Airport World, Issue 6, 2022

Theme: Investing in airports

Airport profile: Singapore Changi

Review: ACI Africa/World Annual General Assembly

Plus: Asset management & Cargo security

In the spotlight: Investing in airports

Airport World

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Joe Bates +44 (0)1276 476582 joe@airport-world.com

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Time for reflection

Airport World editor, Joe Bates, considers the end of another eventful year for the world's airports and the ‘investing in airports’ theme of this issue.

It's human nature to remember the good times and to try and put the less than happy ones to the back of your mind, and typically this scenario peaks around Christmas and the New Year when we look back at the 12 months that have just unfolded and look forward to the year ahead.

In many ways the end of one year and the start of another brings closure to what has happened, and sets us up nicely for the next period in our lives and all the opportunities and challenges that it will bring.

And while from aviation's perspective it is a little too early to draw closure on the global pandemic – China recorded its highest ever number of daily COVID cases on November 30 – there is no denying that 2022 has been kinder to the bulk of the world's airports in terms of their traffic recovery.

Survey that passengers have a high intention to travel and have confidence in the industry to provide a safe environment.

"While COVID-19 variants remain a concern for travellers, this year’s report provides new insights to understand current passenger expectations, refine their airport journey, and ensure that their needs are met. This third edition of the survey will drive the customer-centric approach the industry needs to take – by listening to travellers and continuously improving."

Arguably, the host of new infrastructure development projects announced in the final quarter of 2022 and covered on pages 14-16 of this issue is another sign of the industry's recovery from the pandemic.

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Indeed, the continued uptick in passenger numbers are in line with ACI World's forecast that the industry will fully recover from COVID in the second half of 2024, the bounce back being led by global domestic passenger traffic, which is expected to reach 2019 levels in late 2023.

Another sign that we have turned the corner with COVID is provided by the results of ACI's ASQ Global Traveller Survey, which reveals the highest intention to travel by passengers since the beginning of the pandemic. Specifically, this year’s survey highlighed that:

• 76% of pre-pandemic travellers were planning to travel in 2021-2022; with 68% of them actually actioning those plans.

• 86% of respondents are planning to travel by air in the year to come. The removal or loosening of many barriers and crisis measures clearly contributed to these results.

• Travellers’ perceptions of air travel, particularly their negative concerns, have shifted. Travellers are mainly concerned about the increased costs (77%) and complexity (75%) related to air travel.

Commenting on the survey results, ACI World director general, Luis Felipe de Oliveira, said: “It’s clear from the ASQ 2022 Global Traveller

'Investing in airports' is actually the theme of this issue, so in addition to shining the spotlight on new projects at Chicago O'Hare, Brisbane, Macau, Riyadh and Central Poland; we learn about the airport investment strategy of the Port Authority of New York and New Jersey; and ponder where the public-private partnership (PPP or P3) market is heading post-COVID.

The themed section also includes a design feature about the planned transformation and expansion of Fukuoka Airport's international terminal; and Avports' connectivity and development strategy for Connecticut's Tweed New Haven Airport.

Elsewhere in the issue, we have a comprehensive review of October's ACI Africa/ World Annual General Assembly, Conference & Exhibition in Marrakech and features on asset management; cargo security; maintenance and operations; and sustainability.

Our main airport feature is on Singapore Changi and we round the issue out with the thoughts of ACI World director general, Luis Felipe de Oliveira; our regular ‘people matters’ column; and World Business Partner (WBP) news.

That’s all from us for 2022, folks! I look forward to 2023 and once again bringing you all the news, views and developments from this great and exciting industry of ours.

In

29 Bigger and better

Airport World talks to

Ishii about plans to transform and expand the international terminal at Fukuoka Airport in Japan.

30 Show business!

Joe Bates looks back at some of the highlights of the recent ACI Africa/World Annual General Assembly, Conference and Exhibition in Marrakech.

36 Maximising your assets

Matt Bentley from Service Works Global offers advice to facilities managers about asset management, including the key benefits and how technology can deliver efficiencies and cut costs.

38 Boxing clever

Daan Van Vroonhoven, Smiths Detection's global director for aviation and regulatory compliance, considers how developments in screening solutions can help the air cargo industry meet the pressures it is facing on several fronts.

Director General

Luis Felipe de Oliveira (Montréal, Canada)

Chair Aimen Al Hosni (Muscat, Oman)

Vice Chair Candace McGraw (Cincinnati, USA)

Immediate Past Chair Martin Eurnekián (Buenos Aires, Argentina)

Treasurer Candace McGraw (Cincinnati, USA)

ACI WORLD GOVERNING BOARD

DIRECTORS

Africa (3)

Emanuel Chaves (Maputo, Mozambique)

Capt Rabiu Hamisu Yadudu (Lagos, Nigeria)

1 Vacancy

Asia-Pacific (9)

Aimen Al-Hosni (Muscat, Oman)

Mohamed Yousif Al-Binfalah (Bahrain)

Geoff Culbert (Sydney, Australia)

SGK Kishore (Hyderabad, India)

Seow Hiang Lee (Singapore)

Emmanuel Menanteau (Paris, France)

Nitinai Sirismatthakarn (Bangkok, Thailand)

Akihiko Tamura (Tokyo, Japan)

1 Vacancy

Europe (7)

Arnaud Feist (Brussels, Belgium)

Jost Lammers (Munich, Germany)

Javier Marin (Madrid, Spain)

Yiannis Paraschis (Athens, Greece)

Kadri Samsunlu (Istanbul, Turkey)

Stefan Schulte (Frankfurt, Germany)

Nazareno Ventola (Bologna, Italy)

Latin America & Caribbean (3)

Ezequiel Barrenechea (Guayaquil, Ecuador)

Mónica Infante (Santo Domingo, Dominican Republic)

Juan José Salmón (Lima, Peru)

North America (6)

40

Raising the bar

Airport World discovers more about SFO's pioneering Airport Carbon Accreditation status, a climate goals agreement between Hamburg and Christchurch airports, and a handful of other green initatives across the globe. 42

Keeping people moving

We report on some of the operational and maintenance news stories making headlines in Europe and across the wider airport ecosystem. 44

World Business Partners News

The latest news and views from ACI’s World Business Partners.

46 People matters

Dr Richard Plenty and Terri Morrissey reflect on some of the challenges airports working with private investors may face by embracing a more entrepreneurial culture.

Lew Bleiweis (Asheville, USA)

Joyce Carter (Halifax, Canda)

Deborah Flint (Toronto, Canada)

Joseph Lopano (Tampa, USA)

Candace McGraw (Cincinnati, USA)

Sam Samaddar (Kelowna, Canada)

Regional Advisers to the World Governing Board (10)

Guillaume Branlat (Saint-Denis, Réunion)

David Ciceo (Cluj-Napoca, Romania)

Fred Lam (Hong Kong)

Tan Sri Bashir Ahmad Abdul Majid (Delhi, India)

Mpumi Mpofu (Johannesburg, South Africa)

Andrew O’Brian (Washington DC, USA)

Jorge Rosillo (Galapagos, Ecuador)

Brian Ryks (Minneapolis-St Paul, USA)

2 Vacancies

WBP Observer

Keith Thompson (Gensler)

Correct as of December 2022

HOK's Hiroyuki Kawakami and Azusa Sekkei's Makoto

View from the top

Despite the unprecedented downturn in the aviation sector, global passenger traffic is expected to reach close to 18 billion by 2040 and investing in airports continues to be key to a thriving air transport system, which as we know, provides many social and economic benefits to the world.

While the good news is that air travel is in full recovery and on the path to restoring its full socio-economic impact, the pandemic has magnified the long-standing airport challenge of meeting future capacity, particularly in light of aviation’s environmental goal of achieving net zero carbon emissions by 2050.

Creating fertile grounds for investment

Changes in industry ownership structures have been in constant evolution over time, with both challenges and opportunities along the way, such as defining solid regulatory frameworks for the airport business and adapting to modern Environmental, Social and Governance (ESG) standards.

ACI does not prescribe to any specific type of ownership or business model and airports should be permitted to operate under a range of ownership models. The type of ownership, and any participation of private capital, varies from airport to airport depending on local circumstances.

However, in an economic climate where governments have ballooning debt levels following the pandemic, government financing and ownership of airports are not always viable and sustainable options. By the same token, many national governments find themselves in a predicament where surges in air transport demand outstrip the infrastructure available to accommodate the markets in their jurisdictions.

If government spending cannot be relied upon as it has been in the past, there is ample evidence of the value created by private investment in airports around the world.

A time to be flexible

Concession contracts are a key part of investing in airports. The pandemic-induced crisis has brought a clear opportunity to rethink and modernise the various components of these contracts to provide a level of flexibility. Some of the instruments used for this re-equilibrium include the reduction in concession fee payments to the government, as well as temporary adjustments to airport charges.

Additionally, several governments around the world have opted to implement adjustment measures such as extending the years of the concessions, direct financial support to airports, or modification in the cost of capital structure.

All these instruments are valid tools that should be considered within the regulatory framework of current and future concession contracts. However, the implementation of such measures varies across jurisdictions with many airport operators continuing to face considerable financial challenges.

Investing for a sustainable future

Considering the industry’s long-term environmental goal and the substantial decline in airport revenues during the pandemic, concession contracts must consider pre-funding mechanisms that allow for airports to keep investing in the decarbonisation of existing infrastructure as well as net zero greenfield projects.

In addition, the availability of green finance will undoubtedly support the industry’s sustainability targets and are crucial to the future of the industry.

A light-handed approach

Light-handed formats such as trigger-regulation or charges monitoring should be favoured in airport privatisation processes as they provide the necessary responsiveness and flexibility airports need to swiftly respond to external shocks.

Additionally, commercial agreements between airports and airlines can be efficient risk-sharing mechanisms to bring certainty to both users and operators during periods of low traffic volume – a win-win approach for the benefit of passengers and the whole aviation ecosystem.

Learning opportunities

Even though the pandemic brought many negative consequences for the aviation community, it has become a valuable learning opportunity for governments and regulators around the world.

The opportunity of modernising the airport investment process, including terms and conditions in concession contracts, should be taken advantage of today.

Fortunately, the airport industry is in constant evolution, and I have no doubt concessions will keep making progress to provide the necessary tools for airports, and all involved stakeholders, so that the industry can keep growing sustainably for the benefit of travellers and communities worldwide.

ACI World director general, Luis Felipe de Oliveira, provides his thoughts on investing in airports for a sustainable future.

The Changi way

Changi is looking to the future with optimism.

As we near the end of 2022, where would you say Singapore Changi is in its recovery from the global pandemic in terms of passenger numbers and your route network, and what are the expectations for 2023?

Singapore Changi Airport handled 3.7 million passenger movements in October 2022, reaching 65.3% of its pre-COVID-19 traffic levels. With more borders re-opening and as the global travel recovery picks up pace, we expect the airport to handle 80% of pre-COVID-19 flights by year-end.

Operationally, Changi is now back to using all four terminals again and subsequently capable of handling up to 70 million passengers per annum after only operating Terminals 1 and 3 during the pandemic. We re-opened Terminal 4 in September, 2022, after a hiatus of more than two years due to the COVID-19 pandemic. This followed the resumption of arrival operations in the southern wing of Terminal 2, which was undergoing expansion works, in May 2022.

In terms of connectivity and route network, Changi Airport is currently served by more than 80 airlines flying to some 130 cities globally. North America, South Asia and Oceania have experienced the strongest recovery when it comes to passenger traffic. In fact, passenger numbers to and from North America have rebounded so strongly that they have now exceeded pre-pandemic levels.

When it comes to the South Asia market, Changi has not only re-established connectivity but exceeded its pre-COVID-19 city links, and India now ranks among Changi’s top three markets for recovery. In Oceania, Australia has been experiencing a strong recovery, with both Qantas and British Airways resuming their Sydney-SingaporeLondon services.

On the back of a continued surge in travel demand as we move into 2023, Changi Airport Group [CAG] will continue to work closely with our airline partners to increase flight frequencies and connectivity to better serve our passengers.

Looking forward, when is it envisaged that passenger traffic will return to 2019 levels, and are there any particular markets that are expected to drive the recovery?

Both ACI and IATA have forecast that passenger traffic will recover to pre-COVID-19 levels by 2024. We expect the recovery at Changi Airport to continue to gather pace in the months ahead as travel restrictions are eased in key markets in the region. Having said that, we believe that the recovery of Asia-Pacific, in general, may lag behind other regions because of existing restrictions in key markets like North Asia.

While it is difficult for us to determine when we will return to pre-pandemic levels, our focus remains on ramping up Changi Airport’s capacity so that we are ready when the traffic returns.

From CAG's perspective, our teams have been working hard to grow our connectivity and expand our reach to new source markets and passenger segments. In the last two years, we welcomed 10 new passenger airlines – a mix of full-service and low-cost carriers – and introduced five new passenger city links. We are also working to regain connectivity to points in Southeast Asia, especially Indonesia’s secondary cities.

In the longer-term, we aim to become the most connected airport in Asia by actively exploring opportunities with both existing airline partners and prospective new airlines to connect to more secondary

Tan Lye Teck, Changi Airport Group's executive vice president for airport management, brings

Joe Bates up to speed on how his gateway has fared in 2022 and explains why Singapore

cities in Asia, such as Jaipur and Lucknow in India and Hai Phong and Phu Quoc in Vietnam. We also want to broaden and deepen long-haul connectivity to the Americas.

Can you tell our readers a little more about Changi Precinct and its attractions?

When COVID-19 struck and international travel came to a standstill, we partnered with the Singapore Tourism Board and various stakeholders to develop more domestic tourism offerings for locals, and Changi Precinct was one of them.

Made up of eight neighbouring districts such as Changi Village, Tampines, Simei and Pulau Ubin surrounding the airport in the east of Singapore, Changi Precinct features many rustic nature spots, historical landmarks and undiscovered gems waiting to surprise visitors. It complements 10 other precincts in Singapore, each with its own flavour and unique attractions reflecting the history and culture of Singapore.

One of the key attractions that we created within the precinct is the Changi Airport Connector, and within that, Changi Jurassic Mile. As a result, for the first time, we have a recreational cycling-cum-jogging track that runs all the way from Changi Airport to the city area and beyond.

It is now a well-loved attraction by families and young children thanks to features such as its pre-historic-looking flora and fauna as well as permanent life-sized dinosaur displays. We also curated new and interesting products like a cycling tour within Changi Precinct and forest bathing sessions in Jewel Changi Airport, where one can discover the unique charms of the precinct.

And we have no intention of resting on our laurels, as with the recovery of air travel gathering pace across the world, we have exciting plans to boost the attractiveness of Changi Precinct to give travellers even more reasons to come to Singapore and allocate time in their itinerary to explore the precinct.

Spotlight on Terminal 5

First announced in 2013, Changi Airport’s Terminal 5 (T5) is a project being undertaken by the Ministry of Transport (MOT), the Civil Aviation Authority of Singapore (CAAS) and Changi Airport Group (CAG).

Due to the COVID-19 pandemic, the T5 project was paused for two years. During this time, MOT, CAAS and CAG admit that they "re-assessed the trajectory of aviation growth", and reviewed Terminal 5's design to make it more modular and further enhance its resilience and sustainability.

To secure Singapore’s capacity to ride on the long-term growth of aviation, work on the T5 project has now resumed. CAG is remobilising the design and engineering consultants to refine the T5 design. Construction is expected to commence in about two years to ensure that Terminal 5 is operational around the mid-2030s.

Drawing on lessons learnt from the COVID-19 pandemic, CAG says T5 will be designed with the flexibility to operate as smaller sub-terminals when needed, with space that could be converted for use during contingencies, such as for testing operations or the segregation of high-risk passengers.

Specialised provisions to reduce the transmission of diseases will also be deployed in T5. These will include the use of contactless systems at passenger touchpoints, as well as enhanced ventilation systems that can be activated during a pandemic to increase the use of fresh air and minimise the mixing of air.

CAG notes that Terminal 5 will be a green and sustainable terminal with carbon footprint reducing solar panels, smart building management systems, district cooling and thermal energy storage.

It is also expected to be a world leader in terms of its deployment of new technology. For example, T5 could see the deployment of autonomous vehicles to support airside baggage and cargo operations as well as robotics for baggage handling.

What are the key targets of CAG's sustainabilty strategy and achieving carbon neutrality?

The key targets of CAG’s sustainability strategy are in three main areas – carbon emissions, water consumption and waste recycling.

When it comes to carbon emissions, the plan is for zero carbon growth until 2030, capping absolute carbon emissions at 2018 levels despite the growing number of passengers that Changi Airport is expected to serve in the years ahead.

CAG is committed to cutting carbon emissions while improving resource efficiency through initiatives ranging from projects to enable the use of sustainable aviation fuel, bio-diesel and electric vehicles at the airport. We also strive towards the net zero emissions aspiration by 2050 through the use of new technologies and the increased adoption of renewable energy.

One of the highlights of our recent Sustainability Report was the fact that we managed to decrease our overall water consumption by 5.9% during FY2021/2022. Apart from improving chiller condensate and the airport's waste water recycling capabilities, Changi has reduced the use of potable and non-potable water, ranging from toilets and building cooling systems to irrigation and cleaning.

Our recycling efforts enabled us to successfully divert 11% of waste from incineration during FY2021/2022. Our philosophy is to optimise waste management by reducing waste at source, encouraging good recycling practices and implementing effective waste collection systems.

Close collaboration and communication with licensed contractors, airport partners and cleaners has also enabled us to identify opportunities to use resources more efficiently. Projects embarked on over the past year have included the upcycling of building materials and composting of horticultural waste.

Although it is still a few years away, can you tell us why Singapore Changi needs Terminal 5?

Terminal 5 is part of the Changi East mega-development – its 1,080-hectare site is almost as big as the land area of today’s Changi Airport – which will provide future capacity for Changi Airport. The new terminal will be able to handle around 50 million passengers annually, boosting Singapore’s air hub status and strengthening its competitiveness and relevance.

Clearly, Terminal 5 will be green and sustainable beyond today’s standards. It will be a resilient complex that can handle future pandemics more nimbly. It will also be designed for the deployment of automation at scale. Very importantly, we would want it to be more than just an airport terminal – we want it to be a place that will connect with and be loved by all Singaporeans.

Is Changi Airport experiencing the same recruitment difficulties as many other airports around the world and, if so, what are you doing to make the airport more attractive to potential new employees?

CAG is currently looking to fill around 250 vacancies, with about half of these being operational roles to help manage the increase in passenger traffic as travel resumes. The rest of the vacancies at CAG relate to the recruitment of new staff with the skill set to support CAG’s transformation and innovation journey for long-term growth. We are actively looking for people with expertise in digital technology to lead more innovative projects and help us create an airport of the future that will enable Changi to stay relevant and ahead of the competition.

For the wider community at Changi Airport, our airport partners have been actively recruiting more staff. This is to enable them to ramp up their operational capacity to handle more flights and more passengers.

The aviation sector in Singapore has responded to the need for more staff by organising job fairs and other activities to attract the workers needed to meet the demands generated by the traffic recovery. Fortunately, in Singapore, aviation is perceived to be an interesting and dynamic industry, and Changi Airport is known to offer a good working environment. Our government and the Civil Aviation Authority of Singapore have also provided strong support. This has helped the aviation sector to attract over 6,000 new workers in 2022.

Indeed, the airport is well on its way to getting back to the work force level that was in place before the pandemic struck. For me, what is most heartening has been the way the whole airport community has pulled together through thick and thin, firstly to keep going and resilient during the pandemic, and now by all working together to raise manpower levels and step up training so that, together, all of us can ensure a smoother travel journey for passengers coming through Changi Airport.

Looking to the future

It proved to be a busy end to 2022 with global traffic figures on the rise and the annoucement of a number of big infrastructure development decisions that will either help transform the airports that are planning them or create new greenfield gateways.

Our end of year round-up provides a snapshot of what is to come at Chicago O'Hare in the US, a glimpse at the potential future for Brisbane Airport in Australia; and discover what's in store for Macau International Airport.

We also look at some of the most ambitous plans ever unveiled for new airports courtesy of projects in Poland and Saudi Arabia and reflect on the openings of new facilities in Doha, Hong Kong and Los Angeles.

News about two other significant US airport projects – New York JFK's planned Terminal 6 and the opening of Newark Liberty's Terminal A – can be found in the Port Authority of New York and New Jersey's article about how it is using PPP projects to transform the Big Apple's airports, on pages 22-24 of this issue.

All the way USA

The Chicago Department of Aviation (CDA) has received the green light to go ahead with its proposed Terminal Area Plan (TAP) at Chicago O’Hare International Airport.

The decision, following the completion of the FAA's environmental review of the project, paves the way for construction to start on two new satellite concourses at the gateway and the new O’Hare Global Terminal that will replace Terminal 2.

“Chicago’s transportation infrastructure is what makes this city an economic powerhouse of global importance,” said US Transportation Secretary, Pete Buttigieg Buttigieg. “Now, as we prepare to break ground on O’Hare’s newest terminal, Chicago and this entire region will be positioned to grow and create good-paying jobs through the benefits of first-rate infrastructure, beginning with the construction project itself.”

CDA commissioner, Jamie Rhee, said: “We now have a clear path forward to start construction on the Terminal Area Plan which includes

Satellite Concourses 1 and 2 and the O’Hare Global Terminal, the centre-pieces of the capital improvement programme we call O’Hare 21.

“I thank the FAA for its comprehensive review of the proposed plan as we work to completely transform the O’Hare experience for the traveller of tomorrow.”

The review analysed a number of Chicago Department of Aviation projects including new terminals, on-airport hotels, airfield and taxiway improvements and support facilities.

It also reviewed the FAA’s proposal to make permanent angled approaches to Runway 10R/28L to allow simultaneous arrivals to multiple runways.

The FAA, which started the review process in 2018, concluded that the proposed construction projects and changes to air traffic procedures will not significantly affect any environmental resources, including noise, air quality, water resources, and historic sites.

Its decision clears the way for construction to begin on the satellite concourses and related airfield work when the ground thaws this spring. The current construction timeline calls for the first satellite concourse to be completed in 2027 and the second satellite concourse to reach completion in 2028.

Demolition of Terminal 2, the airport’s oldest passenger facility, will occur in phases. The work is scheduled to begin in 2026, with a target completion date of 2030 for the construction of the O’Hare Global Terminal.

Construction of a large tunnel connecting passengers, baggage, and utilities between the O’Hare Global Terminal and the satellite concourses is anticipated to begin in 2024 with a construction completion date of 2030.

The current capital programme for O’Hare is approximately $12.1 billion, which accounts for current project estimates, escalated costs permitted under the 2018 agreement, as well as capital investments agreed to both since and prior to the 2018 agreement.

The host of ambitious infrastructure development projects unveiled across the globe in the final quarter of 2022 shows confidence in the future growth of aviation and the investor appeal of airports, writes Joe Bates.

The total budget for the TAP is currently estimated to be $7.1 billion, or 59% of the overall capital plan.

Brisbane Airport considers new Terminal 3

Brisbane Airport Corporation (BAC) is consulting with its airline partners about the possibilty of a future Terminal 3 as it looks at ways of best accommodating a projected 50 million passengers annually by 2040.

“We are running out of terminal capacity and we’re looking at the best location, together with our airline partners, for where that new terminal will go,” said BAC CEO, Gert-Jan de Graaff.

“We think it will be in between the two runaways because that’s the perfect location to minimise aircraft taxiing, and it is close to our current domestic terminal.

“We need more domestic capacity to cater for demand. A few of our domestic airlines will likely go into Terminal 3. We might even allocate some international traffic in there as well to provide for better connectivity between domestic and international flights.

“Terminal 3 will be state-of-the-art, so that will be a terminal built for the 2030s. Sustainability will be at the front and centre of our plans, as will accessibility."

Brisbane Airport is currently planning to invest more than A$5 billion over the next 10 years on upgrading its existing terminals, building extra car parking, developing BNE as a regional aeromedical hub, expanding its retail precincts and building more freight facilities.

Green light for Macau expansion

China's Central Government has approved the expansion of Macau International Airport to raise the gateway's capacity, boost its operational efficiency and improve connectivity to the Special Administrative Region (SAR).

Like in nearby Hong Kong, the expansion project will involve reclaiming land from the sea, which in Macau International Airport's case is expected to be around 130 hectares, and take place in different phases whose timings will be based on traffic demand.

The airport handled 9.6 million passengers in 2019, and following the completion of the first phase of the expansion programme is expected to be to handle in excess of 15 million passengers annually.

The Macau SAR Government says that it “hoped that improvements to airport infrastructure and the further opening of the air transport market, would facilitate the recovery and development of the aviation industry locally, and help create a more sustainable path for Macau’s civil aviation sector”.

Macau's Civil Aviation Authority (AACM) has also issued a statement expressing gratitude for Beijing’s approval and optimism about the future development of the aviation sector.

It said: "AACM is confident that the enhancement of the airport infrastructure, the optimisation of the terminal facilities, the gradual resumption of flight services, and the expansion of the aviation network will offer more diversified services to both Macau residents and travellers from the Pearl River Delta Region."

New Riyadh meg hub and aerotropolis

Saudi Arabia has unveiled plans for a new mega hub for Riyadh which will be called King Salman International Airport.

According to the master plan, King Salman International Airport will boost Riyadh’s position as a global logistics hub and stimulate transport, trade and tourism.

It is ultimately expected to accommodate up to 185 million passengers per annum and process 3.5 million tons of cargo yearly by 2050.

The gateway will be located on a huge 57 square kilometre site allowing for six parallel runways and airport support facilities, residential and recreational facilities, and retail outlets.

Saudi officials state that it will will be built with sustainability at its core, ensuring that King Salman International Airport will be powered by renewable energy.

The bold plan was unveiled by His Royal Highness, Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister and chairman of the Council of Economic and Development Affairs (CEDA) and chairman of the Public Investment Fund (PIF).

He noted that the masterplan for King Salman International Airport will boost Riyadh’s position as a global logistics hub, stimulate transport, trade and tourism, and act as a bridge linking the East with the West.

The airport project is in line with Saudi Arabia’s vision to transform Riyadh to be among the top ten city economies in the world and to support the growth of Riyadh’s population to 15–20 million people by 2030.

In addition to its aviation infrastructure, the airport site will also include 12 square kilometres of airport support facilities, residential and recreational facilities, retail outlets, and other logistics real estate.

If all goes to plan, the airport aims to accommodate up to 120 million passengers per annum by 2030 and potentially around 185 million by 2050, along with the capacity to process 3.5 million tons of cargo annually.

And there’s more as its backers want the new gateway to become an aerotropolis centred around a seamless customer journey, world-class efficient operations, and innovation.

Riyadh’s identity and the Saudi culture, they say, will be taken into consideration in the airport’s design to ensure a unique travel experience for visitors and transit travellers.

“With sustainability at its core, the new airport will achieve LEED Platinum certification by incorporating cutting edge green initiatives into its design and will be powered by renewable energy,” says PIF.

The announcement comes as part of PIF’s strategy which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia’s efforts in diversifying the economy, and it is in line with the National Transport Strategy and the Global Supply Chain Resilience Initiative.

The new airport is expected to contribute around $7 billion annually to non-oil GDP and to create 103,000 direct and indirect jobs, in line with Vision 2030 objectives.

New airport in Central Poland a step closer to reality

NACO is part of a consortium, together with Foster + Partners and Buro Happold that will be the master architect of the Centralny Port Komunikacyjny (CPK) – a new greenfield airport terminal and train station in Central Poland.

The hub aims to be operational by 2028, initially serving 40 million passengers annually and acting as a gateway to the country.

Royal HaskoningDHV subsidiary, NACO, has been chosen to provide a range of aviation and design sub-consultancy services towards the development of the CPK, in consortium with its project partners.

These will include terminal and rail station planning, baggage handling, IT, security and special airport systems, design of wayfinding and the landside-airside co-ordination.

The creation of the CPK airport between Warsaw and Łódź is part of Poland’s new transport development programme, Centralny Port Komunikacyjny.

The large infrastructure project also includes a network of new railway lines totalling 2,000km in length. Once completed, it will be possible to reach Poland’s largest cities from Warsaw in no more than two and a half hours.

Combining the greenfield international airport with a Public Transport Interchange (railway and bus station) and road connectivity will, theoretically, mean that CPK has the potential to become the main gateway to Poland.

Marcin Horola, the Polish government minister associated with the project, said: “We have marked one of the most important

milestones – the inauguration of the co-operation with the master architect, who will have the most spectacular influence on the shape of the new airport.

“I am confident that it will not only look great, but will provide the best passenger experience, putting them at the heart of the design.”

The concept design of key CPK buildings is expected to be ready as early as the middle of 2023, and all other design services will be provided within two and a half years from the contract conclusion date.

According to developers, the envisaged integrated design will be based on sustainable design principles; the four pillars of biophilia and wellbeing; visual and seamless connectivity; structural and operational efficiency, and smart and flexible technologies.

Grant Brooker, head of studio, for Foster + Partners, said: “We believe that this project will completely revolutionise travel across the country and beyond. The vision of woven architectural form is deliberately and strongly expressed.

“It could shape the building and guide the passengers through its spaces, while also serving as a powerful symbolic reference to Poland’s rich cultural heritage and the united strength of its people.”

New kids on the block

Airports around the world unveiling new facilities in Q4 2022 included Hamad International Airport (DOH), Los Angeles International (LAX) and Hong Kong (HKG), which unveiled a newly expanded passenger terminal, the opening of Terminal 4.5 Core, and Sky Bridge respectively.

Hamad believes its expansion project, which has allowed for the creation of a tropical garden with over 300 trees and 25,000 plants at the centre of the terminal, will enrich the passenger experience and transform the airport into an “extraordinary destination where any journey is worthwhile”.

In Los Angeles, the ongoing modernisation of Los Angeles International Airport (LAX) continues with the opening of the Terminal 4.5 Core, the first major component to be completed as part of a $1.62 billion project at the 60-year-old Terminals 4 and 5.

While Hong Kong's new 200 metre long Sky Bridge allows passengers to travel between Terminal 1 and its Satellite Concourse (T1S). It is also a record breaker as its 28m height means that it is the world’s longest airside bridge that allows Code F aircraft such as the A380 to pass under it.

SEA Reached New Heights with Prolitec Scenting

With more people vaccinated and increasingly hitting the skies, airports are gearing up to enhance the travel experience, and several have turned to ambient scenting to do just that.

A major example of that is Seattle-Tacoma International Airport (SEA) who was rated as the Best Airport in North America and Cleanest Airport in North America. We sat down with them to explore how scent helped them achieve these accolades, creating the reassuring feeling of clean and enhancing their travelers’ experience.

SEA Makes Waves

High-traffic areas represent key challenges for airports. Constant use can create stubborn unwanted odors that defy the perception of safe cleanliness. Scent can solve these issues.

According to renowned scent designer, Raymond Matts, “A scent can possess the ability to be comforting, helping to ease the tension of an experience.”

SEA employs scent to achieve this comforting effect in their busiest restrooms and pet relief areas using the Genie diffusion system, by leading commercial scent provider, Prolitec, Inc. The technology incorporates proprietary molecules that target malodors and odorcausing bacteria.

For those that have never had the opportunity to experience the subtle scents SEA offers, it can be described in one word – crisp.

Genie’s “Tidal Wave” fragrance creates the crisp feel with a lively fusion of zesty orange and bright greens, sprinkled with subtle hints of white flowers and lily of the valley. For the trained noses out there, one might catch the soft notes of sandalwood and musk that add dimension and richness to the experience.

The Scent Journey Takes Flight

In an article published in Tacoma, WA’s local paper, The News Tribune, Bruce Kendall, president and CEO of the Economic Development Board for Tacoma-Pierce County, said that traveller experience is a stand-out success for SEA.

“At the end of the day, what’s most important about the airport experience is how quickly and safely one gets to the airport, through

the airport, and out of the airport,” Kendall said. “That’s the real proof in the whole branding and customer service effort. It’s encouraging to see them take the customer service experience as the core of what they’re trying to do.”

And Skytrax agrees! In July of 2022, the international air transport rating organization named SEA as the “Best Airport in North America” as well as the “Cleanest Airport in North America.”

According to Valentine Smith, C.M Manager, Custodial Services at Port of Seattle, scent contributes a lot to the successful travel experience: “Focusing on cleanliness and creating pleasantly scented areas is part of how we create an elevated passenger experience here at SEA.”

Setting an Example for the Industry

As the aviation industry tackles the lingering impact of the pandemic, airports are continuing to put a priority on traveler safety, turning to scent to help create a sense of wellness and a reassuring sense of clean.

As SEA’s Valentine Smith sums it up: “SEA is committed to the safety and well-being of our passengers. This includes a deep emphasis on cleanliness to protect the health of those working and traveling during the pandemic. Ambient scent can positively impact the traveler experience, which is why we diffuse refreshing scents in our high traffic areas.”

Global passenger traffic is expected to reach 2019 levels in late 2023 with the full-year recovery to 2019 levels in 2024, according to Airports Council International.

Private enterprise

In the post-COVID era there has been plenty of speculation on the role that the private sector, and public-private partnerships (PPPs) in particular, might play in airport ownership and development.

Several governments around the world have had to give financial support to airports during the past two years when their gateways had little to no business and this has acted as a wake-up call. Is it justified that taxpayer dollars are spent on bailing out airports during a crisis when private sector-owned airports would ordinarily go to the debt markets to see them through a rough patch?

Of course, COVID-19 was more than a rough patch, which is why there was even more discussion on the way forward for future airport operations and financing. In the US alone – where airport public-private partnerships are rare – lawmakers allocated about $10 billion in economic relief to eligible American airports via the March 2020 CARES Act (which made available $2.2 trillion in total across many sectors).

The funds for airports were distributed by the Federal Aviation Administration (FAA) through the Airport Coronavirus Response Grant Program (ACRGP). Most of it was shared between commercial service airports; those with more than 10,000 annual passenger boardings. Including concession relief, the amount of public money handed out was substantial, covering a large number of airports.

The US and Canada are a special case because here private sector participation in airports is tiny at just 4% based on passengers handled in 2019 as most gateways are owned by local municipalities. The only other region that has such low private sector participation is Africa at 10%, but that is gradually changing.

By contrast, the share in Europe and South America is 76% and 77% respectively, with a global average of 45%, according to ACI data.

Amid these regional variations, what is in no doubt is that private sector participation is growing. In 2016, there were 614 airports with private stakes and they processed 40% of all passengers. In relatively short order, that number had risen to 708 airports handling 45% of passengers (based on 2019 traffic).

COVID capital spending setbacks

Admittedly, there are some arguments why American-style state funding and operation of airports can be a good thing during hard times. After years of almost non-stop annual passenger growth, COVID-19 ensured that – for the first time in decades – traffic risk has become a talking point.

Airport capital expenditure (CAPEX) contracted in 2020 and 2021 relative to 2019 “in the realm of double digits during the worst days of the pandemic”, according to ACI World’s vice president and chief economist, Patrick Lucas.

Markets with more privatised airports, like Europe and Latin America, suffered some big setbacks as capital spending was reduced due to financial shortfalls. On the other hand, markets like the US, thanks to the CARES Act and institutionalised federal subsidies pumped into airport infrastructure, saw less of an impact on CAPEX investment. Asian and African markets meanwhile were a bit more varied on their spending deferment.

In the good times, however, private sector involvement is often encouraged. Private operators are usually very willing – and faster –to invest if they can see that the returns will be good. Right now, in a strong recovery phase for aviation, investors are more likely to see the positives across 5+ year horizons.

The latest (seventh) round of airport privatisations in Brazil, where the highest bid from AENA was more than three times the asking price, is evidence of this trend. Through airportIR.com, Modalis closely tracks active and potential upcoming deals in the global markets and we are seeing an uptick in activity now that the worst of COVID seems to be behind us.

Earlier this year, ACI World's Lucas explained in a podcast from the World Association of PPP Units & Professionals (WAPPP) that a fundamental evolution had taken place in the airport-airline relationship and that more risk sharing would be the future. He said: “If we have learned anything from the pandemic, we know that we have to share risks a bit better.” Not just to recover losses from the pandemic but to ensure a more stable financial environment during future crises.

Where is the airport PPP market heading post-COVID? Modalis Infrastructure Partners' Curtis Grad takes a closer look at the market and considers the possibilities.

As part of this redrawing of the risk map, ACI expects to see more renegotiations of agreements in the non-aeronautical side of the business, especially when it comes to dealing with uncertain traffic volumes. For example, this is true of minimum annual guarantee (MAG) contracts, and the increasing use of joint ventures, one of the latest being India’s Bengaluru Airport and travel retailer Dufry, where the airport landlord and their concessionaire work in closer partnership.

Third party expertise

At the macro level of airport terminals and whole airports, many smaller or financially-constrained governments have found it easier, and more cost effective, to hand over airport operations via PPPs that act as a national revenue generator.

The impetus is evident in many parts of the Caribbean and increasingly in South America. Africa is also getting renewed interest, with TAV Airports, for example, expanding its footprint on the continent via Lagos, Nigeria, on the back of high traffic expectations.

In the US, too, the PPP bug has selectively taken hold. At New York’s LaGuardia and JFK International airports the landlord, the Port Authority of New York and New Jersey, has been active in pushing ahead with PPP deals with an impressive outcome at LGA Terminal B. The latest $4.2 billion deal for Terminal 6 has just been closed with JFK Millennium Partners.

Dramatic terminal transformations from ‘third world’ embarrassments', as described by then US Vice President Joe Biden in 2014, are positive examples to other US states looking to improve their passenger experience. A collaborative process that requires less from the public purse but produces good – or even better – outcomes for users is hard to ignore.

Asia, historically has been favourable to the development of airport PPP projects and a quick glance at the projects in play in the region –particularly in India, the Philippines, Japan, Cambodia and Indonesia confirm that appetite still remains.

India remains one of the strongest airport PPP markets in the region with several existing PPP deals and more Airports Authority of India airports are still waiting to come under the hammer. Adani Group is the biggest private player in the Indian airport market and has expressed its intention to grow through further acquisitions should opportunities arise. Expansions at existing privatised airports are also taking place, for example at Bengaluru Kempegowda, plus add-on projects in Malaysia and the Philippines.

In the pipeline

Below is a list of potential future airport privatisation deals in Africa; the Caribbean & North Atlantic; Europe; Middle East, Levant and CIS; and South America based on information available on November 29, 2022.

AFRICA

• Zimbabwe – PPP/concession (status tbc)

• Luanda, Angola – concession (status tbc)

• Tripoli-Mitiga, Libya – concession (status tbc)

• Ghana (multiple airports) – (status tbc)

• Malawi – PPP/concession (status tbc)

CARIBBEAN & NORTH ATLANTIC

• Family Islands, Bahamas – pending after change of government

• Bimini Airport, Bahamas – private group seeking investors

• Pacific (La Unión), El Salvador – market sounding

• Panama, 4 Regional Airports – market sounding

• Bávaro, Dominican Republic – pending Supreme Court challenge

• Orotina, Costa Rica – on hold due to COVID-19 impacts

EUROPE

• Glasgow-Prestwick, United Kingdom (perpetually on-market)

• Palermo, Catania, Genoa, Italy – concession (unsolicited bids)

• Dubrovnik, Croatia (unsolicited bids)

• Bucharest, Romania (unsolicited bids)

• Beauvais, France (concession)

• Warsaw-Modlin, Poland (greenfield, concession)

MIDDLE EAST, LEVANT & CIS

• Istanbul – Sabiha Gökçen, Turkey (secondary)

• North Kuwait (early government planning stage)

• Bishkek, Kyrgyzstan (concession)

SOUTH AMERICA

• Cayenne, Guyana – concession

• Natal, Brazil – re-tender (Q4 2022 or Q1 2023)

• Santos Dumont w/ Rio de Janeiro-Galeão (re-tender 2023)

• Viracopos, Brazil – re-tender or take-over tbd?

Scale is important

It is notable that the private sector in Asia tends to have weight at high-volume airports in the market as this is where profits generally lie. WAPPP noted: “Asia stands out from the other continents with more than 45% of passengers in the region having travelled using airports benefiting from private sector involvement, even though these airports represent only about 15% of the airports in Asia.”

In the Middle East – where the state has traditionally owned all aviation assets from the airports to the airlines – there are changes afoot. Saudi Arabia’s huge push to develop inbound international tourism as part of its very ambitious Vision 2030 strategy, also brings with it a healthy dose of PPP involvement, from hotels to airport infrastructure.

The Kingdom has stated: “Private investment plays an essential role in realising Vision 2030. Saudi Arabia aims to achieve an increase from 40% to 65% in private sector contribution to GDP.”

The Privatisation Law has already been enacted to attract foreign direct investment and the latest announcement for King Salman International Airport (please see page 15) on the aviation front is a new master-plan for a six-runway hub for Riyadh that will be among the biggest in the world.

The country’s Public Investment Fund (PIF) – one of the largest sovereign wealth funds in the world – said that the airport would include 12 square kilometres of airport support facilities, space for residences and recreation, retail outlets, and other logistics real estate. The aim is to accommodate up to 120 million travellers by 2030.

As we enter the new post-COVID world, there is consensus that travel and tourism will grow again, and quickly. The UNWTO expects that international tourism will reach 65% of pre-pandemic levels by the end of 2022. Of course, while China maintains its zero-COVID policy, a return

to 100% and beyond is unrealistic, unless there is a surge in domestic travel that is enough to offset the loss of outbound flyers.

On the other hand, in other regions and markets such as Europe and the US, demand has exploded and globally UNWTO says that an estimated 700 million tourists travelled internationally between January and September 2022.

By sub-region, several reached 80% to 90% of their pre-pandemic arrivals in this period. Western Europe hit 88% and Southern Mediterranean Europe was at 86%. The Caribbean, Central America were both at 82% with Northern Europe just behind at 81%.

Moreover, there were some destinations reporting arrivals above pre-pandemic levels in those nine months including Albania, Ethiopia, Honduras, Andorra, Puerto Rico, Dominican Republic, Colombia, El Salvador and Iceland.

Naturally, private investors in the airport sector are looking closely at all the recovery and forecast traffic data – as well as longer term demographic economic development trends – when making their investment decisions.

The Modalis view is that while obstacles remain, not least those of geopolitical conflict and the risk of an economic downturn, the demand for travel will continue to outweigh the negatives as has been shown very strongly in the second half of 2022.

Coupled with an ever sharpening focus on green finance, this puts the airport PPP market – from both the landlord and investor side –on a strong footing for the future.

About the author

Curtis Grad is the founding partner, president and CEO of Modalis Infrastructure Partners Inc., a strategic investment advisory and professional services company specialising in airport infrastructure privatisation.

Big Apple time

The concept of public entities partnering with private investors to bolster and complement public-sector capital spending –popularly referred to as P3 – has received a great deal of attention over the past decade or so, but at the Port Authority of New York & New Jersey, we’ve leveraged such deals for more than half a century.

Although they weren’t called P3s at the time, we pioneered the practice of airport P3s in the 1960s at John F Kennedy International Airport, where we teamed up with Pan Am, TWA, Northwest, National, Eastern and other aviation giants of the past to design, build, operate and maintain air passenger terminals and their supporting infrastructure.

The Terminal City that emerged helped Kennedy Airport become the No. 1 international gateway in the United States as airlines featured their spectacular new terminals as showpieces that helped link the New York metropolitan region to the rest of the world.

Much, of course, has changed since the dawn and initial expansion of the jet age. All those airlines are gone now, but air travel has continued to grow, along with the use of P3s.

The latest iteration of P3s at the Port Authority airports began in earnest at the start of this century, when we collaborated with a private-sector consortium led by the Schiphol Group to build and operate Terminal 4 at JFK. That terminal opened in 2001, has been expanded multiple times since, and is viewed today as a model P3 airport partnership.

Building on that success, JFK today is in the initial stages of a massive public-private redevelopment programme that will deliver terminal expansions at existing facilities and two new terminals to

anchor the north and south sides of the original Terminal City, creating a more centralised airport with a system of new, more efficient roadways, critical electrical and related infrastructure, and more.

But JFK is just one part of the equation. The three New York City metropolitan region airports we operate – JFK, Newark Liberty and LaGuardia – together comprise the busiest system of airports in the Americas.

Pre-pandemic, they served more than 140 million annual passengers, and a sustained recovery since 2020 has led to us forecasting to return to 2019 passenger levels by 2023, which means it’s more important than ever to invest in our facilities.

And we’re doing that at an unprecedented pace: The three airports currently account for a record public-private investment programme that will deliver about $30 billion in systemwide improvements.

Making such extraordinary investments is one of the three pillars that underpins our vision to be a world-class operator of world-class airports, which simply means that by every objective measure, we expect to compare favourably to our peers around the world – in customer satisfaction surveys, implementing cutting-edge technology, leading innovations in airport safety and sustainability, and more.

In addition to investment, we also are focused on delivering a customer experience that exceeds expectations while also integrating governance standards and accountability mechanisms into all agreements at our airports to allow us to enforce a world-class operation at every level and maintain our redeveloped infrastructure in excellent condition for years to come.

The Port Authority of New York & New Jersey is using public-private partnerships to create world class terminals and transform customer experiences across its airports, writes deputy director of aviation planning & development, Sarah McKeon.

At LaGuardia, we’ve already seen the benefits of our vision. New York’s premier short-haul airport located just a few miles from midtown Manhattan has undergone a remarkable transformation with two new terminals as part of a comprehensive plan created in 2015 to construct a whole new LaGuardia Airport. The goal was simply to create a world-class, 21st century passenger experience featuring modern customer amenities, state-of-the-art architecture, more spacious gate areas and a unified terminal system.

Two-thirds of the $8 billion project was funded through private financing and existing passenger fees.

A collaboration between the Port Authority and the LaGuardia Gateway Partners consortium resulted in a spectacular new Terminal B, a $4 billion overhaul that has already been recognised with UNESCO’s Prix Versailles as 'Best New Airport in the World'.

The new terminal includes 1.35 million square feet of new facilities and features 35 gates, a 3,000-car parking garage, and new covered, convenient pickup facilities for both taxis and ride-sharing vehicles.

The terminal offers best-in-class retail, vast dining experiences and stunning art and amenities. Related roadway improvements and supporting infrastructure were all built while keeping the terminal fully functional during construction.

The opening of LaGuardia’s new Terminal C in June 2022, just months after Terminal B was unveiled, marked the substantial completion of our whole new LaGuardia Airport just six years after beginning construction.

At a cost of $4 billion – including a $500 million investment by the Port Authority for new roadways and supporting infrastructure –Terminal C represents Delta Air Lines’ largest ever investment in an airport facility. The 1.3 million square foot complex is 85% larger than the two terminals it replaced – consolidating access to 37 gates through a single arrivals and departures hall.

Designed for optimal efficiency and speed, it allows travellers to navigate to and from their gates quickly and intuitively by utilising the latest technologies such as hands-free bag drop and Digital ID screening capabilities.

The departures hall features 36 full-service check-in counters, 49 self-service kiosks and 16 bag-drop counters. A larger and consolidated security area features 11 screening lanes with room for five additional lanes in the future, featuring state-of-the art technology to expedite screening while prioritising the safety of passengers.

The Port Authority and its private partners also are transforming Newark Liberty International Airport with three major projects underway totalling about $5.3 billion in public and private investment.

Newark’s new Terminal A, a $2.7 billion terminal, features the latest passenger amenities, dazzling artwork, digital technology and dining and retail from 60 regional, national and global brands.

The design-build project was led by Tudor Perini/Parsons, with terminal operator, Munich Airport International (MAI), brought in to operate and maintain the one million square foot complex. Its facilities include 33 gates capable of handling larger aircraft, as well as a common-use check-in area, and more passenger friendly security and baggage claim areas. The terminal is expected to handle an estimated 13.6 million passengers a year.

In addition to the new terminal, the redevelopment programme also includes a $400 million integrated public parking garage with new centralised rental car facilities – the Port Authority funded the public parking portion – and $175 million for airfield paving.

The facility is the largest design-build project in New Jersey’s history and the largest single investment in New Jersey by the Port Authority in our 101-year history.

Also at Newark, the Port Authority recently hired Arup, one of the world’s top aviation planning and design firms, to oversee an ambitious vision plan for future development of the airport, in partnership with leading architecture firm Skidmore, Owings & Merrill.

The master planner will develop a comprehensive development strategy and blueprint – including extensive local community outreach and participation – to accommodate future growth and demand, improve the travel experience and identify opportunities for enhancing the sustainability and resiliency of the facility.

At JFK, a public-private redevelopment programme to rival all P3s is in its initial stages, with the Port Authority contributing more than $2.9 billion of the $15 billion-plus programme.

The $9.5 billion, world-class New Terminal One is being built under an agreement with the New Terminal One consortium, which includes lead investor Ferrovial, a global airport operator which recently agreed to acquire 96% of The Carlyle Global Infrastructure Fund’s 51% stake in the New Terminal One.

The consortium that was selected to design, build and operate the new terminal that will anchor JFK’s south side. At 2.4 million square feet, it will be the largest terminal at JFK when complete – nearly the same size as LaGuardia’s two new terminals combined.

Construction of the new terminal will take place in phases. The first phase, including the new arrivals and departures hall and first set of new gates, is expected to open in 2026.

After completion of all three phases in 2030, the New Terminal One will have 23 gates as well as bright and airy check-in halls and arrival spaces designed to enhance the customer experience and compete with some of the highest-rated airport terminals in the world.

As part of the project, the Port Authority will undertake infrastructure upgrades and improvements including roads, parking, and utilities including a new electrical substation.

Three other major components are part of JFK’s transformation:

• The $4.2 billion, 1.2 million-square-foot Terminal 6, to be built by JFK Millennium Partners on the airport’s north side, will

seamlessly connect with JetBlue’s existing Terminal 5. The new Terminal 6 is a public-private partnership between the Port Authority and JFK Millennium Partners, American Triple I, real estate operating company RXR, and JetBlue Airways.

• The $1.5 billion expansion of Terminal 4, led by Delta and JFK International Air Terminal and financed by private capital, will create 10 new gates, while adding 150,000 square feet to expand the terminal.

• The $425 million expansion of JFK's Terminal 8, led by American Airlines, which operates the terminal, and British Airways – which will be relocating to Terminal 8 from Terminal 7 – is also underway.

The key for P3s to truly work is that they must strike a balance –and maybe 50-50 is too much of an ideal – but something must be gained on both sides of the equation.

By creating a healthy marriage of private and public sectors that allocates risk, we’ve been able to deliver financial benefits to all parties while, most important of all, vastly improving the customer experience by revitalising our facilities.

Fewer places make better sense for the private sector to engage the public sector than the Port Authority of New York and New Jersey's airports. People want to fly to New York and people need to fly to New York, and for all their inherent challenges, these airports were, are, and will remain, a lucrative market with limitless possibilities for public-private partnerships/ P3 projects.

Breaking the mould

Avports' investment in Connecticut's Tweed New Haven Airport shows that public-private partnerships can work for smaller US gateways, writes the company's CEO, Jorge Roberts, and chief operating officer, Arturo Garcia-Alonso.

Over the past 95 years, our team at Avports (formerly Pan Am World Services) has contributed to growth and continuity at over 30 small airport communities, including 47 continuous years managing Westchester County Airport (HPN) and 51 years at Teterboro Airport (TEB) to name a few.

In the US, there are more than 5,000 small airports and aerodromes, some of these struggle to survive. In most cases, these facilities are located in regions with high air travel demand, which have been historically underserved.

Just getting the project started requires vision, key partnerships, patience, and perseverance, and then, committed and focused work.

Regional airports are challenging and complex in their own way, but they also provide unique opportunities for growth. Our experience with Tweed New Haven Airport (HVN) – for decades one of the most underserved airports in the US – provides a case study of how a public-partnership can be structured to achieve the aforementioned objectives and results.

The vision

During the nineties, HVN showed great success in leveraging air travel demand and opportunities by attracting regional air carriers and commuters for the main legacy carriers, connecting key large hubs with New Haven, such as Philadelphia, Chicago, Washington and Newark.

However, in the wake of 9/11 and with several waves of airline consolidation, the passenger traffic consistently decreased as legacy airlines rationalised their operations. The decline eventually led to HVN becoming arguably the most underserved airport in the country considering its location in one of the most densely population regions of the US – Tweed New Haven is located about 60 miles south of

Hartford’s Bradley International (BDL) and 80 miles northeast of New York’s LaGuardia (LGA) and John F Kennedy (JFK) airports.

In spite of this environment, Tweed New Haven Airport Authority and Avports believed in the tremendous opportunities of the airport.

Indeed, data showed the Southern Connecticut region is among the top three most underserved markets in the United States, and HVN is the perfect airport to serve this market. The challenge was HVN’s constrained infrastructure and facilities, including a short runway, prevented the airport from serving this demand.

We were not the only ones with a bullish vision for HVN. In 2020, during the most damaging times of the pandemic, when most companies were still trying to adjust to the 'new normal', we came to an agreement with Andrew Levy (former co-founder of Allegiant) and his newly formed team at Avelo, which were developing a new US-based ultra-low cost airline with the vision of establishing their base at New Haven.

The result is a fascinating story of air traffic growth at regional airports – going from zero traffic to more than 14 destinations in its first year of operation at HVN.

Key partnerships

The cornerstone of this project (or any project) is aligning all key stakeholders into a shared vision for the airport, including the Mayors of New Haven and East Haven, the Governor and other elected officials, union leaders and the business and residential communities.

Under the new 43-year public-partnership agreement (PPP or P3) between the airport authority and Avports, we assumed the risk and responsibility for all HVN's operating expenses and any ongoing deficits, eliminating all local subsidies and saving taxpayers money.

This includes eliminating the historical subsidies of nearly $2 million per year (or more than $30 million over the past 20-years) from the City of New Haven and the State of Connecticut to fund HVN's operation and capital projects.

Avports is also making significant investments into the airport in the form of an extended runway and a modern, environmentallyfriendly terminal, which will be built in the coming years. At the conclusion of our lease, these improved assets will revert to the full control and ownership of the Tweed New Haven Airport Authority and the community it serves.

Simply put, this is a first of its kind hybrid partnership in the US between the public and private sector. The structure of this hybrid partnership is a key precedent and could provide the needed flexibility for US airports that are operating at a deficit or need to develop their infrastructure to meet the market demand.

Patience and perseverance

Getting to this point took time to develop the trust and align objectives with key stakeholders and the broader community.

We have kept an open line of communication with partners by not only having an open invitation to communicate ideas and concerns, but also proactively engaging stakeholders on a regular basis, including hosting multiple community meetings, ensuring everyone’s voice could be heard.

For example, in response to the airport’s surrounding community input, we have worked with our airline partners to limit the size of the planes as well as landing and take-off hours of operations. We also committed to investing $3.25 million in noise reduction for neighbouring residents, above and beyond existing FAA resources.

A new beginning

When Avelo arrived at HVN, it marked the first time in the last 30-years that the airport simultaneously served more than two destinations. Since then, Avelo has flown more than 600,000 customers to and from New Haven and has 180 New Haven-based crew members, for a total of 300 new direct and indirect jobs, with more jobs to come.

And with 14 non-stop destinations and growing, Avelo is now one of the leading airlines serving Connecticut.

Throughout Avelo’s growth, HVN has held numerous local job fairs to help fill positions with the airline, and also with us at Avports. The response has been tremendous from local jobseekers, showing the energy and excitement – and also the need – for the kind of promising economic development HVN is now providing for Southern Connecticut.

The future

This P3 at HVN represents a once in a generation opportunity for this region with the best yet to come.

The next major step will be lengthening the runway to a length of 6,635 feet – a number that was recommended in the airports adopted masterplan to allow existing aircraft to reach farther destinations.

Avports will also build a new, modern and environmentally sustainable passenger terminal on the east side of the airport. This facility will be carbon-neutral and follow LEED principles, reducing HVN’s carbon footprint and positioning the airport as one of the most sustainable regional airports in the world.

It will provide high efficiency climate control systems, renewable energy sources, and re-engineered waste and recycling programmes, underscoring the airport’s comprehensive and holistic approach to sustainability.

The new passenger terminal will also develop direct and indirect stable jobs, including good-paying construction jobs through a project labour agreement (PLA) with the local trades, while also generating more jobs from the economic spillover the airport will stimulate.

We’ve only just begun to bring our bold vision to life; there remains much work to be done, but our successes so far have yielded a model that can be replicated by other airports in the US and beyond.

Working closely with key stakeholders, responding to community concerns, prioritising the needs of the region, and moving forward swiftly and decisively creates results that benefit real people.

Bigger and better

Airport World talks to HOK's Hiroyuki Kawakami and Azusa Sekkei's Makoto Ishii about plans to transform and expand the international terminal at Fukuoka Airport in Japan.

Construction is underway on a "state-of-the-art international terminal expansion and renovation project", which together with a new runway, will effectively equip Fukuoka Airport to handle up to 16 million passengers per annum by the end of 2025.

The airport selected Azusa Sekkei, HOK and West JEC to design the new-look international terminal, Azusa Sekkei and HOK being well known to it as they led the design team for the original terminal back in the 1990s.

The project will create an expanded commercial hall with new retail and F&B offerings; a refreshed departure hall, meeter/greeter space and bus terminal; and provide additional gates and security lanes in the international terminal.

At the same time as the international terminal is being revamped and expanded, the Japanese government has given the green light to a separate project to build a new runway at the airport, with both due for completion in 2025.

Below architects Makoto Ishii and Hiro Kawakami tell us more about why the upgrade was needed and what passengers can expect from the new and improved terminal when it opens in three years' time.

Why does Fukuoka Airport need to upgrade and expand its facilities?

Quite simply the new facilities are needed to allow Japan's fourth busiest airport to keep up with demand. The capacity of the existing international terminal is 3.9 million passengers annum. When the expanded terminal is completed it will be capable of accommodating 12 million annual passengers.

The airport is also getting a new runway in a separate governmentdriven project. With additional future gates, the expanded international terminal will eventually be able to handle 16 million passengers.

What was your design brief for the terminal renovation and expansion project?

The airport required three main things – ample concessions space for departing passengers in the secure area; a bigger and more passenger friendly arrivals hall (i.e., the meeter and greeter hall) with direct access

to ground transportation options; and an updated and expanded check-in lobby area that accommodates new technologies.

How big is the terminal expansion and what is the timescale for its construction?

The total terminal floor area following the expansion will be 130,000 square metres. This is approximately twice the size of the existing building. The majority of the construction is scheduled to be completed by March 2025. Some interior renovation projects will be done by the end of 2025.

What will the expansion add in terms of facilities and enhanced capabilities for the airport?

In addition to those already mentioned, the expansion project will add a new inbound and outbound passport control area; a new-look baggage claims area; an extra concourse/gate holdrooms; and a new parking facility.

Will the expanded terminal feature a sense of place in its design and facilities?

The exterior architectural concept is ‘simple and fluid’. The design team’s intent is to create harmony with the existing building without simply replicating the current structure. It will incorporate a new form and aesthetic, expressing the airport’s mobility and ambition, that represents the new Fukuoka Airport. As you would expect, the interior design features various Japanese and local traditional crafts from Fukuoka through colour, texture and geometric patterns.

Has the advancement of IT systems and touchless technology been factored into the expansion project?

The airport will adopt emerging technology while maintaining its current use of e-gates and auto passport control systems. An autonomous inter-terminal shuttle bus is also under consideration for some time in the future.

Show business!

With many unable to attend an ACI World Annual General Assembly (WAGA) in person since the start of the global pandemic, anticipation was high ahead of this year's event in Marrakech, and a series of lively panel discussions, informative presentations and a spectacular Gala Dinner ensured that it didn't disappoint the more than 600 delegates and 50 exhibitors lucky enough to be in Morocco.

The theme of this year's ACI Africa/World Annual General Assembly, Conference and Exhibition was 'Sky's the limit: Discovering opportunities within change', and the event – hosted by Moroccan Airports Authority (ONDA) – began with opening addresses by Morocco's Minister of Transport and Logistics, Mohammed Abdeljalil; ONDA director general, Habiba Laklalech; ACI Africa president, Emanuel Chaves; ACI Africa secretary general Ali Tounsi; CEO of Oman Airports Management Company and ACI World chair, Sheikh Aimen Al Hosni; and ACI World director general, Luis Felipe de Oliveira.

“As ACI Africa embarks on its fourth decade, it remains determined to support the strategy and roadmap of all African airports towards enhanced safety, security, best industry practices, decarbonisation, digital transformation and sustainability. The future is in our hands," noted ACI Africa's Tounsi.

In his state of the industy address, ACI World's de Oliveira said: "As you know, the pandemic's impact has been far greater than any crisis we have experienced before. However, it has given us a chance to build back better and seize opportunities in a changing environment.

"And what better sign of a positive future [for aviation] than the adoption of a landmark long-term climate goal for aviation taken by the world's governments a few weeks ago at 41st ICAO Assembly.

"The decision will drive the future of the industry and the future of our sector. It is a major moment in the decarbonisation of airports as governments and industry are now heading in the same direction."

In terms of the global traffic recovery, de Oliveira told delegates that around three billion passengers passed through the world's airports in the first half of 2022, which was 69% of the total handled in the corresponding period in 2019.

He noted that the relaxation of travel restrictions had proved the catalyst for recovery, with ACI World now predicting that global passenger numbers will hit 6.8 billion by year-end – 74% of prepandemic levels – and reach 2019 levels in late 2023 before a full recovery in 2024.

"Looking longer-term, we expect global passenger figures to reach 18 billion by 2040 with the growth coming from Africa and emerging countries, and in this part of the world, we expect the aviation market to triple in size in certain locations."

Concluding his address, de Oliveira said: "By working together we can continue to responsibly take the necessary actions to step out of the shadows of the pandemic and do what we do best, transporting goods and services, and connecting businesses, families and loved ones from all four corners of the globe."

ACI Africa's Chaves took the opportunity to address the number of key challenges and opportunities facing African airports, stating that aviation's commitment to decarbonise by 2050 was one of the biggest challenges.

In respone to the challenge, he noted that ACI Africa has set up a Sustainable Aviation Academy, fully endorsed ACI's Airport Carbon Accreditation programme and urged member airports to embrace

Joe Bates looks back at some of the highlights of the recent ACI Africa/World Annual General Assembly, Conference and Exhibition in Marrakech.

sustainability to ensure that all existing facilities and new infrastructure is "resilient to climate risk".

Chaves also noted that ACI Africa continues to grow as a regional organisation – it now represents 71 airport members that between them operate 265 airports in over 50 countries and has 56 World Business Partners – and is commited to helping raise service standards, operational best practices, sustainable development and safety and security levels across the continent.

Two keynote speakers followed the opening ceremony. First up, the president and CEO of the Flight Safety Foundation, Dr Hassan Shahidi, discussed some of the safety challenges facing African aviation. While the secretary general of the African Civil Aviation Commission (AFCAC), Adefunke Adeyemi, covered some wider issues such as airline liberalisation and the possibility of one single air transport market for the whole of Africa in a bid to improve connectivity within the continent.

Adeyemi opened by reminding delegates about the size and enormous potential of Africa, explaining that the continent has a population of 1.4 billion spread across a landmass of 30 million square kilometres – big enough to fit the US, China, India and parts of Europe combined inside its borders.

Its size, she said, made aviation vital to transporting people across the continent, yet a number of obstacles currently restricted growth and connectivity between African airports, resulting in only around 100 million of the continent's huge population flying today.

As a result, observed Adeyemi, the African Union and subsequently AFCA supports two key projects designed to boost aviation growth across the continent – the creation of a Single African Air Transport Market (SAATM) and establishing an African Continental Free Trade Area (AfCFTA) to effectively ensure the free movement of people, goods and services.

"SAATM is important because currently Africa's liberalisation in terms of Fifth Freedom access is set at less than 15%, meaning that only 15% of the entire continent with a population of 1.4 billion are connected properly by air," said Adeyemi.

"If all of the countries in Africa opened up their markets to each other on a Fifth Freedom basis, amazing things could happen. For

example, it will add an additional $4.2 billion to the GDP of African economies and create almost 600,000 additional jobs. And it will reduce the cost of airfares by 30%, which is a big issue in Africa because of the affordability of air travel."

Up next was the always lively CEOs panel discussion. In the hot-seat this year were Deborah Flint, president and CEO of Greater Toronto Airports Authority; Kadri Sumsunlu, CEO of iGA Istanbul Airport; Geoff Culbert, CEO of Sydney Airport; Joseph Lopano, CEO of Tampa International Airport; and Alex Gitari, managing director of Kenya Airports Authority.

In answer to the question where their respective airports were today in terms of their recovery from the pandemic, Sydney Airport's Culbert said: "This time last year I was sitting in lockdown in Sydney, I couldn't leave my country. Nobody was allowed to come into Australia and the borders of Australian states were shut to each other so I couldn't even leave New South Wales. As a result, we were handling around 1% of our pre-COVID traffic numbers, losing A$1 million a day, and there was no end in sight.

"As I sit here today, we are 85% recovered in terms of domestic passenger traffic, 65% recovered on international, and that feels great! Our biggest year was 2019 when we handled around 44 million passengers. I expect to handle a high 20 million this year and to be fully recovered domestically next year, and get international back in 2024."

GTAA's Flint revealed that Canada's strict travel measures during the pandemic led to Toronto Pearson’s all-time high of 50 million passengers in 2019 falling to just 12 million 2020 and 2021, although a healthier 38 million (75% of 2019 levels) are expected to pass through its facilities this year.

All the other airport leaders reported strong recoveries from COVID – IST is expected to be Europe's busiest airport for the third year running in 2022 – and expected their respective gateways to be back to pre-pandemic levels for both domestic and international traffic next year.

Regarding some of the well documented delays at airports this summer due to new passenger processing requirements and insufficient staffing issues due to the rapid return of passenger numbers, GTAA's Flint noted that Toronto Pearson hadn't been

immune from the problem, which was exacerbated by traveller levels at YYZ rising from 10% of 2019's levels back to pre-pandemic levels within the space of two months.

It had led to what she described as "a summer of frustration on behalf of passengers" made more challenging by an "exponential increase in processing times" due to the new health requirements. The situation, she believed, highlighted the importance of working together with different stakeholders to solve issues as well as the need to be more transparent and forthright with each other about the readiness and ability to perform their different roles.

Describing some of the resourcing difficulties Sydney has faced due to the rapid return of passengers, Culbert told delegates that his airport lost half of its 30,000 staff during the pandemic, but didn't feel confident enough to start recruiting replacements until Australia's borders opened up, which wasn't until January 2022. Australia's strict COVID health regulations, which required anyone coming into contact with an infected person to self-isolate, meant that on any given day 30% of the airport's existing workforce was off sick.

One positive to come out of the situation, said Culbert, was that it "drove a new level of collaboration between the airport and the airlines as we knew we had to solve this together".

TPA's Lopano accepted that COVID had changed everything for airports in terms of their job appeal, and one way his gateway had responded to this challenge was by making a newly opened office block more people friendly for workers through initiatives such as creating bigger work stations, more open spaces and communal areas as well as opening a fitness centre. The "good environment", he noted, had tempted many individuals back to the office even though it wasn't a requirement for them.

He also noted that the downturn in passengers had allowed TPA to accelerate a $600 million kerbside development project, which would enhance the airport experience for passengers and save his gateway "a ton of money in the process".

New public health and safety readiness accreditation programme

To support the global airport community in their long-term sustainable planning, allowing them to be well-equipped in the face of uncertainty, during the conference ACI World announced the launch of the Public Health & Safety Readiness Accreditation programme for airports.

The initiative is a continuation of the popular Airport Health Accreditation (AHA) programme that supported nearly 500 participating airports during the pandemic.

The new accreditation provides airports with an assessment that evaluates how aligned their public health and safety measures are with ACI guidance, industry best practices, and recommendations from the International Civil Aviation Organization (ICAO) Council’s Aviation Recovery Taskforce (CART).

iGA Istanbul Airport collaborated with ACI World for this initiative and has been announced as the first airport in the world to be accredited under the new programme.

ACI World director general, Luis Felipe de Oliveira said: “We’re thrilled to partner with iGA Istanbul Airport, a leading world airport, for the first accreditation. We aim to welcome many airports to this programme so airports can continue to prioritise the wellbeing of travellers and staff in case of future public health events.”

CEO of iGA Istanbul Airport Kadri Samsunlu said: “iGA Istanbul Airport is committed to continue providing their best for customer and community wellbeing.

“A peer review by ACI on our public health and safety measures, and our compliance and achievements with regards to international standards was greatly appreciated.

“iGA Istanbul Airport has worked closely with ACI by being an active member in ACI committees and working groups and hosted two APEX Reviews in 2022, one on safety and one on security.

“I particularly value the initiatives, collaboration, and knowledge exchange that ACI creates amongst its members.”

In a light hearted end to the session, in response to the hypothetical question which airport and airline in the world would they like to manage one day, Flint suggested Amsterdam Schiphol and Southwest; Sumsunlu offered any airport in Hawaii and Pegasus Airlines; Culbert said Skukuaa Airport on the edge of the Kruger National Park in South Africa and a born again Pan Am; and Gitari said Curacao Airport in the Caribbean and his own airline.

The very important topic of how the industry can work to and achieve net zero carbon emissions by 2050 came under the microscope in the final panel session of the day, with thoughts and advice being offered by ACI EUROPE's director general, Olivier Jankovec; Sam Samaddar, CEO of Kelowna International Airport; Willy Etheve, director of development at Réunion's Roland Garros International Airport; and Akihiko Tamura, president and CEO of Narita International Airport.

Jankovec was proud to note that ACI's Airport Carbon Accreditation programme, launched by ACI EUROPE in 2009, now boasted 420 accredited airports – including 25 in 13 counties in Africa – that account for 50% of the world's passenger traffic.

The programme, he reflected, was a key part of aviation's commitment to achieve net zero carbon emissions by 2050, and therefore was constantly being updated and improved, with a new 'Net Zero' level of accreditation set to be announced next year.

Official business on Day 1 ended with ACI World's Annual Assembly where a number of Resolutions were passed that are designed to strengthen the sustainability and resilience of airports as key players in the aviation ecosystem.

Following the recent landmark agreement by governments, the Resolution Delivering the Long-Term Aspirational Goal acknowledges the challenges that face airports and governments in achieving their goal of net zero carbon emissions by 2050.

The Resolution calls on governments to support the global electrical grid transitioning, update the regulatory framework to accommodate

the integration of alternative fuel sources at airports, and incentivise infrastructure development with appropriate financial mechanisms.

Others Resolutions passed included one calling on governments to acknowledge the changed risk profile of airports in some jurisdictions due to the pandemic and to provide regulatory support to restore economic equilibrium for unrecovered costs, either as financial compensation or through future airport charges.

While another calls on governments and industry to support the capital and human resource development plans of small, emerging, and regional airports and to facilitate their transition to renewable energy.

A spectacular Gala Dinner followed where in between a veritable feast of traditional Moroccan food and music and dancing, ACI World announced the winners of the ACI World-Amadeus Technology Innovation Awards.

The winner of the 'Best innovation in airport passenger related processes' was AENA for the biometric journey offered to passengers at Barcelona Airport. The award for 'Best innovation in airport operations and installations management' went to Incheon Airport for its Data Sandbox. And Hamad International Airport’s senior vice president for technology and innovation, Suhail Kamil Kadri, was named as the winner of the 'Best airport innovation leader (individual)'.

ACI World director general, Luis Felipe de Oliveira, enthused: “Technology is a key ingredient to building a stronger, sustainable, and more resilient aviation industry. It will also be crucial to continue our overall mission to put the customer at the centre of everything we do. Whether directly touching on the airport experience or improving operations, it ultimately benefits the traveller and the communities we serve. And we wouldn’t exist without both.

“We congratulate these winners for pushing our industry to new heights. They are true examples to their peers.”

Day 2 began with a presentation from Incheon International Airport Corporation executive vice president, Hee-Jeong Lee, about the

company's customer service philosophy that recently led to it becoming the first airport in the world to achieve Level 5 status in ACI's ASQ customer excellence programme.

She was followed by a session about the passengers of tomorrow, who will travel and what expectations will they have involving Joyce Carter, the CEO of Halifax Stanfied International Airport; Marco Troncone, CEO of Aeroporti di Roma; and Askin Demir, CEO of Limak-AIBD-Summa (LAS), operator of Dakar's AIBD International Airport.

Discussing the need to adapt to meet the ever changing needs of passengers and ultimately the traveller of the future, Halifax's Carter noted that the top priority of keeping passengers safe changed during the pandemic to also include their health.

"Everything we did every day during the pandemic was to think about the health of those passengers travelling through our airport as well as those working there," said Carter.

"And in terms of passenger expectations, our passengers now expect the same level of services that we offered before the pandemic, particularly with regards to food and beverages and retail, and as we all know, it's not. So, we have spent quite a fair amount of time communicating with our passengers about what services are available and how they should plan their trip from kerb to gate or really from home to destination."

In terms of current and future passenger demands, Carter revealed that there had been a big increase in the desire for locally sourced goods and services at Halifax's shops and restaurants and an upturn in older (55+) travellers, the latter being boosted by the arrival of a number of ultra-low cost carriers.

Looking to the future, AdR's Troncone said that he thought passengers would expect the airport experience to be a smart one, comprising new digital services that guaranteed them a faster, more affordable, predictable and easier experience at more environmentally friendly airports.

Panel sessions on valuing airport infrastructure for an economically sustainable and resilient future; non-aeronautical revenues post COVID; and the digital transformation and managing the cyber security threats followed before the conference part of the show ended with a session called 'The Workforce Crisis: Thinking Long Term'.

The final session, passionately moderated by consultant Yolanta Strikitsa, saw Cincinnati/Northern Kentucky International Airport CEO and vice chair of the ACI World Board, Candace McGraw, among the panellists providing their thoughts on what the future possibly holds for airports in terms of recruiting, training and holding onto staff.

Discussing the 'pain points' for CVG when it comes to attracting and retaining staff, McGraw said the airport's Strategic Workforce Collaborative – a forum formed in 2018 to bring airport employers together to share best practices and ensure a strong workforce to fill future airport jobs – had identified a number of issues that needed to be addressed ranging from transportation difficulties, such as getting to and from the airport, to child care.

In response to the transportation issues, she said that CVG had successfully worked with the local transport provider to increase frequencies to the airport throughout the day.

And she revealed that the airport is currently working on how it can locate a childcare facility on the airport site that is open 24 hours a day, seven days a week.

"We have also identified some hiring areas where we weren't doing very well," stated McGraw. "We weren't hiring military veterans, for example. We also realised that we could find jobs for more people with different abilities."

At the closing ceremony it was announced that Spanish airport operator, AENA, will host next year's ACI EUROPE/World Annual General Assembly, Conference and Exhibition in Barcelona in June 2023. See you there!

Maximising your assets

Bentley from Service Works Global

offers advice to facilities managers about asset management, including the key benefits and how technology can deliver efficiencies and cut costs.

Many airports are now operating at close to pre-pandemic levels. Gatwick Airport, for example, is now offering flights to almost 90% of the destinations it served in October 2019. That’s great news for the industry and for holidaymakers.

For those in charge of managing airport facilities, however, it means the pressure on the job is as high as it ever has been. With millions of passengers passing through major airports around the world, the margin for error is slim when it comes to maintaining a safe and compliant airport – and doing so within budget.

Facilities managers (FMs) and maintenance professionals are often told that technology and digitalisation is the answer. I want to focus on one specific area and give tangible guidance on how it can make the life of an FM easier – asset management.

Digital asset registers

At the highest level, an asset register should contain not just a list of an organisation’s assets, but whether they are fixed or removable, their location, condition, whether it is owned (and by who) or leased, who is responsible for that asset and pictures of each asset.

The beauty of compiling a digital asset registry is that you can add as many different categories as required and go really in-depth. Let’s say you have a category for electrical items. In addition to the top-level

data points listed above, you could include information such as model, manufacturer, description, serial number, warranty dates, asset criticality, installation date, expiry date, cost, and supplier details.

Digital registers can be fully customisable so FMs can add anything they want to track. We even had a client add trees so they could create care and maintenance schedules against them.

Trying to compile such data using Excel spreadsheets or a mix of paper and software systems is a logistical nightmare. Furthermore, paper copies are easy to lose, and an FM or maintenance engineer has to go to where they are stored every time to view them.

Starting an asset register

When you have a finalised digital asset register it will bring huge benefits, not least increased efficiencies from having all data stored in one place and accessible from anywhere.

However, there’s no getting away from the fact that creating the register can be a long and potentially difficult process. We work with one UK airport that has 6,500 assets in its register, so creating the register is clearly a significant project that requires time investment.

This is where is pays to be strategic. Assets can be created in an order that makes sense for the airport. It might be created room-by-

Matt

room, and terminal-by-terminal. Or you may determine that HVAC systems are a priority and start there.

Heavy footfall areas are often a priority for airports. Many are short-staffed so lines for security and check-in are often already long –any further delays can exacerbate an already problematic situation. An airport that we work with in Canada determined that elevators and escalators were a top priority, so started there when they began compiling an asset register.

Regarding actually adding assets to a registry, we recommend an alpha-numeric code that makes sense outside of the software system. For example, elevators in arrivals might be tagged ELE-ARR followed by a unique number string. That will make it easier to track and add assets.

Enhanced compliance

Compliance is absolutely critical for airports. This ranges from ensuring the health and safety of everyone on a site, to delivering the agreed service. We work with clients who operate airports under strict performance criteria; exceeding agreed SLAs (Service Level Agreements) can incur financial penalties, so compliance is important from a financial perspective.

Capturing data such as installation and warranty dates is obviously an important first step. Computer-aided facilities management (CAFM) systems that are used to create asset registries can include a traffic light system for an at-a-glance overview of priorities.

FMs can go further by creating asset groups to improve planned preventative maintenance (PPM) scheduling. An asset group uses the data from the register and can be created using any criteria to group similar assets and assign them maintenance.

Sticking with the elevator example, an asset group could list every elevator and when they should be checked for compliance.

PPMs can be easily assigned to operatives, whether in-house or external contractors, ensuring compliance and cutting down on time wasted by manually checking an asset when not needed.

Adding barcodes to assets can also help to increase efficiency. Operatives can scan a barcode with their CAFM app or phone camera in order to view asset details such as maintenance history, outstanding tasks, and usual manuals. Operatives can also scan a barcode to mark jobs as complete and demonstrate proof of presence to the end client.

Many of our clients require their staff to be able to report issues through the system, without the need for having to contact a helpdesk. This is where an intuitive self-service interface is vital; it saves time reporting potential problems, allows FM and maintenance teams to react quickly and reduces the time taken to fix maintenance or service requests.

Future-proofing the airport

With an up-to-date, detailed asset registry, airports can be much more proactive in their operations.

Asset lifecycles can be mapped out for years in advance, which makes budgeting much more accurate, ensuring optimum useful life of equipment and intelligently informing repair/replacement decisions.

Compliance is easier to ensure with scheduled maintenance and everyone using the same system to track jobs – especially important for airports that have big FM teams, huge physical sites and a mix of in house and outsourced contractors.

It can be a daunting prospect, but it’s well worth it. We’ve had clients see a 30% improvement in workflow and performance within the first six months of switching from spreadsheets to CAFM software to manager service requests.

As more airports, and indeed all sectors, look to digitalise operations, it’s more a question of when rather than if. And there’s no better time to start than now.

Boxing clever

Daan Van Vroonhoven, Smiths Detection's global director for aviation and regulatory compliance, considers how developments in screening solutions can help the air cargo industry meet the pressures it is facing on several fronts.

The air cargo sector faces a range of ever evolving, and new, security threats coupled with tightening global regulation.

In this climate, automation, intelligent networking and data-analytics capabilities have an essential role to play in boosting security, creating operational efficiencies, and assisting with regulatory compliance.

With accelerated growth in international trade and e-commerce, very short delivery times and more interconnected global supply chains, the need for efficiency across the air cargo ecosystem, both in mandatory security screening and in screening for contrabands or dangerous goods, has only increased.

The most common threats for cargo screening are the ones that society has faced for many years; explosives in their different forms, contraband, as well as prohibited or dangerous items like lithium batteries, narcotics, illegal currency, fireworks and bio-threats.

What is changing, however, are the techniques and tactics smugglers are using to conceal these security threats.

The first method is hiding smuggled objects in densely packed parcels or containers so that contraband is missed during screening. Secondly, smugglers try to camouflage explosives or narcotics inside legal substances, such as everyday foods. Finally, smugglers may use ‘shielding’ or distribute contraband in a shipment to impede detection with legacy technology.

Evolving smuggler tactics…prohibited by faster evolving technology

First developed for the medical industry, computed tomography (CT) scanners produce volumetric 3D X-ray images examining shipment contents from every angle.

The comprehensive data collected is used to make precise measurements and very accurate judgements on substances within the shipments, which only require operator analysis when the system flags up something suspicious. This means that fewer operators can deal with growing volumes.

CT technology therefore delivers the highest standards of security as well as improving operational efficiencies and productivity and ultimately lowering costs. The systems are becoming more and more energy efficient and therefore cost effective, which is crucial in today’s business environment.

In future, security and efficiency could be taken to another level through the deployment of X-ray diffraction technology. It provides highly accurate identification of molecular structures and allows for even higher levels of accuracy in material analysis and detecting substances. Diffraction could be used to automatically clear alarms generated by CT scanners as well as to identify currently hard to detect substances, such as narcotics.

Deploying smart algorithms to boost automatic threat detection capabilities

As an industry that trades on speed, efficiency for air cargo carriers will always be paramount, which makes it a key focus. Cargo screening equipment is now being enhanced with ‘smart’ algorithms which identify an ever-expanding list of dangerous goods and contraband.

These algorithms can be trained through machine learning techniques to offer powerful and accurate detection of ever-evolving dangerous, prohibited, and contraband goods and substances.

In the course of time there is also potential to combine the automatic explosives detection capability of a scanner with object

recognition for more accurate judgements on the threat potential of a shipment.

The alarms triggered by automatic explosives detection algorithms could be verified by object recognition algorithms. If no threat is identified, the freight would not need to be rechecked by an operator. This would massively accelerate the movement of goods through screening checks.

With the advancement of technology and the current strain on security operators, there will be more scope for the automation of repetitive tasks where AI is more efficient. Furthermore, AI is already supporting human operators and overcoming gaps in detection capabilities.

Advancing data-analytics

Increased networking capabilities, the advancement of data-analytics and connectivity will also deliver strong operational advantages. For major airport cargo hubs, where there are multiple terminals and consistently high volumes of cargo, wide-area networks (WANs), which enable centralised and remote image evaluation, also help accentuate security.

Although centralisation is not a new concept, image analysis is a new application. WANs can facilitate the real-time sharing of images between different areas of a building or sites (or even countries and continents) enabling greater resource prioritisation and operational efficiency.

Although long established for airport hold baggage screening systems, remote screening is a newer development for cargo. The benefits are particularly clear when it comes to countries with many regional airports spread far apart which see fluctuating cargo volumes.

Linking all outlying locations to a key airport where volumes are more consistent enables more efficient operator resourcing, rather than keeping staff onsite at smaller airports around the clock.

On a country-to-country or even continental level, image sharing via WANs would enable more sophisticated data analysis across global security networks to significantly boost security outcomes, with one set of scanned images for both outbound security and inbound customs clearance at the destination.

Although the capability is there, to fully realise the potential of international data sharing close co-operation between authorities is required.

Linking

technology in a collaborative way for greater security outcomes

Open architecture (OA), which facilitates the interoperability and interfacing of security screening algorithms and screening hardware from different suppliers within one solution, is another huge area of security development.

The future of air cargo security will be driven by data informing risk-based decisions and using integrated sensors and devices from multiple providers. It will require open equipment interfaces and common data formats with an oversight mechanism to provide assurance on aspects such as technical standards, certification and liability.

Already being utilised, the perception is that, in the airport security environment, OA will deliver system flexibility; faster innovation and time to market; and less costly upgrades.

The key drivers to achieve these goals are the integration of third-party algorithms, data sharing and centralised image processing. These themes are relevant to air cargo and, ultimately, the ability to have multiple algorithms from different suppliers, would significantly boost detection capabilities and meet the needs of different stakeholders. The underlying goal will always be to improve operational performance and security outcomes.

The risk-based screening approach of the future

The adoption of risk-based screening as a complement to the other developments is extensively acknowledged as the next major development for screening air cargo. Special treatment requirements for shipments from a high-risk origin country, or cargo that has obviously been tampered with, are already in place.

Going forward, aggregating data from various sources could provide a more refined risk analysis. Integrated, networked security solutions should enable different security measures to be triggered automatically in response to a change in threat. This could, for example, take the form of applying different detection algorithms.

The most obvious benefit is the intelligent use of additional resources to increase security. The flexibility of risk-based screening should also deliver a screening process which can adapt to changing circumstances whilst complying with privacy and data protection concerns.

The technical means to introduce risk-based screening are available now. Many of the latest security screening solutions can integrate sensors and interface with wider information systems and could respond to changing threat levels by flight, destination or sender.

Raising the bar

Airport World discovers more about SFO's new Airport Carbon Accreditation status, a climate goals agreement between Hamburg and Christchurch airports, and a handful of other green initatives across the globe.

San Francisco International Airport (SFO) is celebrating a major sustainability milestone after being awarded Level 4 'Transformation' status in ACI's Airport Carbon Accreditation programme.

The advanced certification recognises the Californian gateway for greenhouse gas reduction from its own operations as well as collaboration with third parties, such as airlines and service providers, in reduction strategies.

As part of this accreditation, the airport is committing to reach zero net emissions by the year 2030.

"This is a major milestone in our goal to be the first zero carbon airport in the world. My thanks go out to the entire SFO airport community for this accomplishment," said SFO's airport director, Ivar Satero.

At Level 4 ‘Transformation’ of ACI's Airport Carbon Accreditation programme, airports are required to align their carbon management ambition with global climate goals and transform their operations with absolute emissions reductions in mind, while also strengthening their stakeholder engagement.

SFO – which has reduced greenhouse gas emissions from airport-controlled operations by 35% since 1990 – notes that it has achieved LEED Platinum Community designation from the US Green Building Council, certifying 16 green and healthy buildings, including the world’s first net zero airport building (Airfield

Operations Facility), LEED Gold (v2009 – Terminal 2) and LEED Platinum (v4.1 – Harvey Milk Terminal 1) terminals, and a WELL Platinum and FitWel-certified Terminal.

Other emissions reducing strategies have included operating eight electric buses and expanding the AirTrain – an electric-powered light rail system – that eliminated over 600 daily bus trips to shuttle passengers between terminals and the Rental Car Center.

Global co-operation at its best Hamburg Airport in Germany and New Zealand’s Christchurch Airport, two airports on the opposite sides of the earth, have agreed to pursue their ambitious climate goals together in the future.

Although 18,000 kilometres apart, the airports have liaised with each other for some time as each has taken a pioneering role in aviation’s decarbonisation journey in their respective countries.

And they now want to actively work towards the net zero climate goal, with a special focus on the future use of green hydrogen.

Indeed, the German gateway says that by the end of 2035 it aims to have completely eliminated carbon dioxide emissions (net zero) and develop its own hydrogen infrastructure.

Hamburg Airport CEO, Michael Eggenschwiler, said: “Sustainable airport operations with renewable energies is a building block for climate protection in air transport – and we will consistently continue on this path.

“Keywords are wind power, solar energy, green hydrogen. Which solutions are suitable for airports and their respective locations must be individually examined and prepared. We are therefore all the more pleased to have gained an experienced partner in Christchurch Airport.

“On an international level, we can bundle our know-how to work towards CO2-free airport operations and a future with sustainably operated aircraft.”

In mid-November, New Zealand Ambassador, Craig Hawke, and Trade Commissioner, Simon Hearsey, visited Eggenschwiler at Hamburg Airport to find out more about the decarbonisation measures at Germanys fifth biggest airport.

Both partners want to actively prepare and promote the future use of green hydrogen as an emission-free energy carrier in aviation and exploit synergy effects. This involves both H2-powered vehicles on the ground and hydrogen-based aircraft propulsion systems to enable a sustainable future for aviation.

Frankfurt's photovoltaic initiative mission

Elsewhere in Germany, Frankfurt Airport operator, Fraport AG, is embarking on another photovoltaic (PV) project at the gateway to increase its proportion of green energy.

It has installed a demonstration system of 20 PV panels with an output of 8.4 kilowatts at the south western end of Runway 18 West and plans to extend the triple-array PV system along Runway 18 West.

Once fully installed, the system is intended to span a length of 2,600 metre parallel to the runway, with a peak generating output of up to 13 megawatts.

Unlike existing PV systems at the airport, the panels for this new system are positioned vertically, rather than diagonally, and the double-sided glass modules pick up sunlight from both an easterly and westerly direction.

According to Fraport, these fence-style systems offer numerous advantages. While they take up minimal space, they generate large volumes of electricity because of their ability to harness sunlight throughout the day.

Another benefit is that grass below the panels is not significantly impacted by the systems overhead since the panels do not obstruct rain or create permanent shading.

“This means we can expect maximum electricity generation with a minimal impact on nature,” says Marcus Keimling from Fraport’s network services team. “That’s important because our green spaces are virtually unique when it comes to their biodiversity. We want this characteristic to remain to the fullest extent, even with the new installation."

Self-generated solar power has been a major component of Fraport’s energy mix since March 2021 and includes a 13,000 square metre PV system that uses a more traditional layout on the roof of a cargo warehouse in CargoCity South and generates peak output of around 1.5 megawatts.

In the longer-term, more PV systems are planned to be installed on new buildings such as the parking building for Frankfurt Airport’s new Terminal 3.

Shannon Airport Group launches new sustainability strategy Shannon Airport Group has launched a new sustainability strategy that it hopes will act as a blueprint to achieve a more sustainable future for the Group, its people, and the community.

Initiatives have been devised across four pillars and include the creation of sustainability programmes to upskill staff; developing a plan to reduce greenhouse gas emissions by at least 50% by 2030; and developing a biodiversity action plan for the Shannon Campus.

Launching the strategy, Shannon Airport Group CEO, Mary Considine said: “We believe it is now more critical than ever to ensure that everything we do across The Shannon Airport Group has a positive impact, environmentally, socially, and economically.

“The ambition for our sustainability strategy is to lay the foundation on which to build a sustainable, vibrant thriving economy for future generations."

Keeping people moving

We report on some of the operational and maintenance news stories making headlines in Europe and across the wider airport ecosystem.

Frankfurt's Sky Line people mover system taking shape

Frankfurt Airport has unveiled the the first vehicle for its new Sky Line people mover, which will carry travellers from the long-distance and regional train stations at the airport straight to the main building of Terminal 3 in only eight minutes.

When operational – the new terminal isn’t due to open until 2026 – the new driverless transportation system will be capable of carrying up to 4,000 passengers per hour in each direction.

The people mover, which will supplement the existing transportation system that passengers have been using for many years to get between Terminals 1 and 2, will boast a total of 12 vehicles each of which is 11 metres and 2.8 metres wide and weighs 15 tonnes. One car of each vehicle will be reserved for non-Schengen travellers.

Fraport AG CEO, Dr Stefan Schulte, enthused: “We are deploying state-of-the-art technology and intelligent construction methods to implement our vision of a futuristic airport terminal. Travellers, guests, and employees can all look forward to short paths, high frequencies, and outstanding levels of comfort and convenience.”

Siemens Mobility in Vienna is manufacturing the vehicles of the new Sky Line people mover to meet Fraport AG’s special requirements.

Albrecht Neumann, CEO for Rolling Stock at Siemens Mobility, explained: “The delivery of the first fully automated vehicle marks an important milestone in the construction of the new Sky Line.

“Going forward, these conveyances will efficiently, comfortably, and sustainably carry passengers to and from the new terminal. The trains are based on our proven Val solution, which is already in use worldwide, including at airports in Bangkok and Paris.”

The Max Bögl group is responsible for building much of the new, 5.6 kilometre-long route on which the new Sky Line will operate. This work has been ongoing since July 2019 and is said to be proceeding right on schedule.

Elevating experience at Ben Gurion Airport

TK Elevator is celebrating its 25th anniversary as a service provider for elevators installed at Tel Aviv's Ben Gurion International Airport in Israel.

The company began servicing installations in the airport in 1997 and today maintains over 80 elevators in the passenger terminals and airport buildings.

This portfolio includes units manufactured by TK Elevator, as well as third-party elevators. A dedicated team is on-site around the clock, 365 days a year, to enable quick, professional, and reliable service.

"A smooth passenger flow is essential to the operations of every airport, and we are proud to have contributed to ensuring this at Ben Gurion Airport for the last 25 years," says Amid Tal, CEO of TK Elevator Israel.

"At TK Elevator, we know that meeting the specific needs of airport customers requires a well-trained, on-site presence and a reliable spare parts supply network. This is how we support the mobility of millions of passengers and are proud to have the continued trust of Ben Gurion Airport."

Ben-Gurion is the country's largest international airport in terms of passenger numbers and aircraft movements and has served as its main gateway since the creation of the state of Israel in 1948.

Optismising airport slots

Veovo has formed a global strategic partnership with OneAlpha, an airport slot management and capacity planning company, which it says gives operators the ability to streamline the slot approval process while maximising the use of runway, apron and terminal capacity and resources.

According to Veovo, the integration of OneAlpha’s tools with its AODB and Resource Management System removes system and communication barriers between airlines and airport slot and planning teams for faster, more accurate decision-making in dynamic-operating environments.

The partnership supports OneAlpha’s vision to share its platform with the world’s best airports. Several of Veovo’s 120+ customers are already benefiting from the alliance.

OneAlpha’s cloud-based slot management tool automates the slot request-to-approval process from one central tool, checking requests against runway, apron and terminal capacity and saving time for slot co-ordinators and airport management. Once the slot is confirmed, the integration with Veovo’s powerful resource management tool enables a seamless handover to strategic planners to optimise resource planning in and outside the terminal, including stands, gates, counters, and baggage belts.

Future, and often last minute, schedule change requests can also be quickly evaluated and automatically integrated into the tactical planning horizon, freeing up experts to focus only on the most complex scenarios.

Veovo believes that the new partnership also offers the additional benefits of supporting long-term planning and regulatory reporting. OneAlpha’s tool, for example, allows operators to forecast the impact of infrastructure improvement or maintenance works on capacity, enhancing operational and commercial decision-making.

And, with resource usage data from Veovo’s RMS fed back into the slot planning process, airports can simplify regulatory reporting and fine-tune future slot allocations – in a continual improvement cycle.

James Williamson, CEO of Veovo, added: “We continue to seek smarter ways to use new technologies and collaborate with partners with the goal of making airport operations more efficient.

"The strategic partnership with OneAlpha is an important step forward in removing many manual airport processes to facilitate better, faster operational decision-making across all time horizons, from slot management and capacity planning to the day of operations.”

Making Phoenix Sky Harbor's HVAC systems more efficient

The City of Phoenix has awarded ECM Technologies an additional $400,000 contract to use its innovative technology to treat Sky Harbor Airport’s massive HVAC systems.

The company’s ThermaClear solution is said to radically extend the life and efficiency of HVAC systems as well as reduce the airport's carbon footprint and offer energy savings of up to 15% annually.

“The efficacy of the ThermaClear treatment on several City of Phoenix facilities led us to extend the original $2.1 million contract

with ECM Technologies, adding an additional $400,000 to treat the airport,” said Jim Gorombei, energy systems specialist at the City of Phoenix.

“We are highly committed to actions that help further our goal of becoming a carbon-neutral city by 2050, and this is one of them.”

Winter ready at Munich Airport

Munich Airport’s huge winter maintenance team comprising 600 and over 180 vehicles has been on standy and ready for action 24 hours-a-day since the start of November in readiness for the cold winter months ahead.

Around 520 of the team come from agriculture and trucking companies across the region as do 66 tractors that form part of the airport's convoy of winter maintenance vehicles.

Up to 190 operatives per shift are on standby to clear the airport site of snow and ice while extra help is provided by specially trained employees available around the clock.

The German gateway notes: “In order to make airport operations as smooth as possible, large areas have to be cleared of snow when it falls. The two runways, the aprons, and the taxiways alone make up around 5.6 million square metres, the equivalent of more than 780 soccer fields.

“It takes around 30 minutes to clear a runway at Munich Airport. Up to 2.2 million cubic metres of snow are collected here every season. An underground collecting tank ensures that the melted snow is not released into the environment.

"Owing to environmental protection concerns, the mechanical clean-up of road surfaces is a priority. The use of surface de-icers is only necessary when the movement areas are at risk of icing over.

“On some of the surfaces, silica sand is used instead of de-icing fluid. Channels along both sides of the runways catch the runoff and carry it to a meltwater retention basin. From here, the meltwater is conveyed to the treatment plant in Eitting in a controlled manner.

“Aircraft must also be freed of ice and snow before take-off. This is carried out by a total of 22 'polar bears’ provided by Enteisen und Flugzeugschleppen am Flughafen München mbH (EFM), a subsidiary of Deutsche Lufthansa AG and Munich Airport.

“EFM de-ices up to 15,000 aircraft – from Learjets to Airbus A380s – per year. The used de-icer is collected and mostly recycled, with a recycling rate of up to 70%.”

Open for business

New AMBAAR Club lounge opens in Salvador Bahia

Local inspiration for new Prague Airport shop

Airport Dimensions has opened a new airside AMBAAR Club lounge at Salvador Bahia International Airport as part of its collaboration with AMBAAR Lounge, which opened a landside facility at the Brazilian gateway in October.

Designed to give passengers a last experience of Bahia (the Bay of All Saints) and reflect the sea-facing veranda houses of the town of Trancoso to its south – once a small fishing village but now a major tourist attraction because of its beaches – Airport Dimensions is confident that the new 538sqm addition will “elevate the lounge experience for customers travelling through the airport”.

Nancy Knipp, Airport Dimensions’ president for the Americas, enthused: “Our partnership with AMBAAR has continued to flourish since its inception and our fabulous new space at Salvador Bahia International Airport is a testament to this.

“As we continue to progress and expand further in this important South American market, we’re humbled to be trusted by so many of Brazil’s airports to deliver a high quality, localised experience for their travellers.

“Our goal is to create spaces that highlight local craftsmanship and décor for a truly authentic travel experience that resonates with local travellers as well as those coming to the region for the first time.”

The new Future is Local shop in Terminal 2 at Prague's Václav Havel Airport really does what its name suggests as it is dedicated to local products and promotes almost thirty Czech and Slovak brands.

All items on offer at the store are said to be “produced from quality materials, in a sustainable manner, and with respect to the environment”, with the design of the shop said to reflect the same principles.

“We are happy that, together with Lagardère Travel Retail Czech Republic, we have opened a purely local shop, which is the first of its kind at the airport and promotes a concept unique even on a global scale,” enthuses Jakub Puchalský, member of the Prague Airport Board of Directors.

Items on sale at the shop range from fashion and gift items to natural cosmetics products from brands such as Klara Rott, KAMA, Studio Malíská, Havlík's Natural Pharmacy and Reparáda.

“The idea on which we have based the whole concept is clear: the future lies in local resources, in other words, in goods, services, materials and, above all, people,” explains CEO of Lagardère Travel Retail Czech Republic, Richard Procházka.

“At Future is Local, we believe in local production, honest craftsmanship, our heritage, and tradition. These are also the criteria by which we select our suppliers. “No brand is anonymous, quite the opposite. The shop is there for everyone who wants to learn more and cares about how, where, and what they buy, and who they support with their purchases.

“Transparency and awareness are an integral part of sustainability. Already from the first customer reactions, we can see how positively they feel about the shop.”

The latest news and views from ACI’s World Business Partners.

HNTB joins celebrations at completion of Denver's Gate Expansion Program

Denver International Airport, United Airlines and HNTB have celebrated the completion of the Gate Expansion Program with the opening of 22 new gates spread across Concourses A-West and B-East.

The new additions are being leased by United Airlines and mean that it now has a total of 90 gates at the Colorado gateway, which is one of its largest hubs.

HNTB served as lead designer, architect and engineer for the A-West expansion project, which supports DEN’s Vision 100 strategic plan to serve 100 million annual passengers within the next 10 years by increasing the airport’s overall gate capacity by 30%.

The new A-West Concourse includes 12 gates, 16 hold-rooms and additional support space totalling 530,000 square feet of new space. There are 10,000 square feet of new concessions space, a new outdoor deck with views of the mountains, outdoor seating and fire-pits for ambiance, plus a pet relief area and nursing room for traveller convenience.

HNTB’s principal designer, Tim Cahill, said: “I’m proud to have been involved with this project from the beginning. HNTB’s design — including natural light, improved acoustics, modern restrooms and a variety of seating options – will result in a pleasant passenger experience.”

The HNTB design and construction administration teams included more than 19 sub-consultants and was comprised of a diverse group of businesses that reflected the local community.

New cafés open at Washington National

The Marshall Retail Group, one of the US’s leading specialty retailers in the airport marketplace, has unveiled its latest F&B concept at Washington’s Ronald Reagan National Airport – The Café at DCA.

The company has actually opened two outlets at Washington National (DCA), each located by the north and south security checkpoints in Terminal 2.

“The Café at DCA provides a custom-built amenity for passengers using the new security checkpoints in Terminal 2 at Reagan National,” said Jaimini Erskine, vice president of marketing and concessions for the Metropolitan Washington Airports Authority. “It is also a welcome addition for non-ticketed visitors who now have access to more food and refreshments when dropping off or picking up airport travellers."

Designed to reflect the classical architecture found around Washington DC with a fresh contemporary twist, The Café at DCA features clean crisp lines and contrasting black and white finishes.

An open grid ceiling throughout the spaces adds a feeling of outdoor dining within the building.

“The Café at DCA provides a warm and inviting environment for airport guests to either grab n’ go or sit and relax,” said Toby Keir, CEO of MRG and InMotion.

ACCIONA AIRPORT SERVICES

Membership Region: Europe

Type of Business: Handling & Airfield W: www.acciona.es

ACCIONA Airport Services is an independent handling operator in Spain and Germany. It is present at 12 airports and handles 200 airlines in the cities of Frankfurt, Madrid, Berlin, Hamburg, Mallorca, Menorca, Ibiza, Tenerife and Las Palmas.

AEROTERM

Membership Region: North America

Type of Business: Retail & Commercial W: www.aeroterm.com

Aeroterm is a fully integrated real estate firm specialising in the acquisition, development, leasing and operation of aviation-related industrial facilities. With over ten million square feet of building and ramp space under ownership and management and a tenant base of over 150 international companies, Aeroterm is among the largest private owners of ramp-served air cargo facilities in North America.

BRADFORD AIRPORT LOGISTICS

Membership Region: North America

Type of Business: Planning & Construction W: www.airportlogistics.org

Bradford Airport Logistics provides dockmaster operations for managing any material freight bound for the airport terminal complex. In conjunction with an airport material information system, dockmaster is a proven and deployed system that tracks and monitors all ground freight entering the secure airport operations area.

PEOPLE matters

Creating a sense of common purpose

Dr Richard Plenty and Terri Morrissey reflect on some of the challenges airports working with private investors may face by embracing a more entrepreneurial culture.

We recently saw the much acclaimed film 'Living' where the main character, played brilliantly by Bill Nighy, spends his days in a bureaucratic office where nothing much gets done. He and his fellow workers spend their days pushing files around from one department to another.

Nighy plays a man without any real purpose in life. However, once he is told he has a terminal illness his behaviour changes dramatically. Realising he only has six months to live, he finally finds meaning and a purpose to his life in taking responsibility for delivering a children’s playground to a deprived area of London.

The film is set in County Hall London in the 1950s when the public sector was characterised by rigid hierarchy, inertia, rules, lack of initiative and no-one taking ownership. This is not an environment which supports the kind of culture that is needed in competitive, fast paced, cost constrained, commercial settings where the customer experience is important.

So fast forward a few decades and perhaps it is not surprising that public-private partnerships – the collaboration between government agencies and private sector companies – are seen not only as a way of providing much needed finance to government agency projects, but as a mechanism for bringing a ‘delivery’ ethos and sharper private sector thinking, attitudes and behaviours into the public sector. They are seen as a means of injecting life into the kind of cultural inertia exemplified by our film’s protagonist.

Airports have been using this approach for some time. According to ACI statistics (2017), airports with private sector participation account for an estimated 14% of airports worldwide, and handle over 40% of global traffic.

The expectation is generally that private sector involvement will help deliver efficiencies, higher performance outcomes and better value for money along with better customer service. But, as

organisation leaders have found in many sectors – including energy, health and transportation –managing the transition to a more entrepreneurial culture is not without its challenges.

It can be difficult to keep all stakeholders happy. In a PPP, the government remains a shareholder and providing national, community and social value remains an important part of what is expected. To take just one example, cutting or reducing services to save money is not always a realistic option.

The best way forward for organisations with potentially divergent shareholders is to commit to a true collaborative approach where all parties develop a shared understanding of their roles and responsibilities in the partnership – and are clear on the overall purpose of the organisation. This should include vision, values and sustainability as well as economic considerations.

While it is relatively straightforward to do this for green field projects, the introduction of PPPs to existing enterprises merits particular attention. For example, adding a new ‘PPP’ terminal to an airport can lead to a clash of cultures (old vs new) with leadership, operational and HR issues and potential confusion.

And culture – the way we work together –is important. A recent ACI EUROPE report: Handbook for Airport Culture (2022), highlights the role that airport culture plays in creating high levels of performance and customer service. A shared vision, values and goals provide a foundation for those working in airports to play an ‘ambassador’ role in their dealings with passengers and create a ‘wow’ factor in passenger experience.

A clear and unified sense of purpose can be enormously powerful. The motivation and enjoyment that comes from achieving worthwhile outcomes – as exemplified by Bill Nighy – should not be underestimated. It can make life worth living.

Karl Eklund will become the new airport director of Stockholm Arlanda Airport and Stockholm Airports on February 1, 2023. He is currently deputy CEO of SAS Ground Handling Sweden.

Irish airport operator, daa, has announced that Kenny Jacobs will become its new CEO in January 2023, succeeding the departed Dalton Philips.

Myron Keehn will become the new CEO of Edmonton Regional Airports Authority when current incumbent, Tom Ruth, retires at the end of December 2022.

AGS Airports has appointed Andy Cliffe as its new CEO. AGS operates Aberdeen, Glasgow and Southampton airports in the UK.

London City Airport (LCY) has announced that, following an extensive search and selection process, Andrew Hodges is to be appointed as its new chief commercial officer.

South Carolina's GreenvilleSpartanburg Airport has named Kirk Eickhoff as its new senior vice president and chief financial officer.

St John's International Airport Authority's new CEO is Dennis Hogan. Hogan has previously held senior executive roles with the governments of New Foundland and Labrador.

About the authors

Terri Morrissey and Dr Richard Plenty run ACI’s Human Resources training. They received a Presidential Citation from the American Psychological Association in June 2022 for their leadership in advancing global psychology. Contact them at info@thisis.eu